Maalot said it was waiting for the publication of Taro’s financial reports.
Maalot the Israeli Rating Company announced yesterday that it was withdrawing its credit rating for Taro Pharmaceutical Industries (Nasdaq: TARO) and would therefore be unable to set a representative rating for the bonds that the company has issued. Maalot added that it would reconsider rating Taro after it publishes its financial reports.
Taro owes an estimated $130 million to bond holders. In 2003 it raised $60 million in Israel, half of which came from the big banks, Bank Hapoalim (LSE: BKHD; TASE: POLI), Bank Leumi (TASE: LUMI), and Israel Discount Bank (TASE: DSCT) in equal shares. Six months later, it raised a further $50 million in an index-linked non-marketable bond issue to institutional investors.
Taro recently received a filing extension from Nasdaq, which will enable it to continue to be listed on the main index until October 5. During this period it will be required to file the report of the independent investigation committee which is investigating the irregularities in the company’s past financial reports. If Taro meets this requirement it will be granted a further extension until November 17 to file its full financial report for 2005. Should it fail to do so, it will be moved to Nasdaq’s Pink Sheets.
Published by Globes [online], Israel business news - www.globes.co.il - on September 21, 2006
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