Standard & Poor's Maalot has lowered Oil Refineries credit rating to BBB following weak operational performance.
Standard & Poor's Maalot Ltd. has cut Oil Refineries Ltd. (TASE:ORL) credit rating to BBB and has put the company on its negative outlook list following its weak operational performance. Only yesterday the Israel Corporation (TASE: ILCO) unit announced that it was laying off 240 employees - 16% of its workforce.
Oil Refineries share price plunged last week as the company lost 25% of its value over uncertainty surrounding its ability to meet financial debt repayments amounting to NIS 5.5 billion to its creditors.
It was only several weeks ago that S&P Maalot gave Oil Refineries A+ rating for raising a bond. Lowering the rating jeopardizes continued investment by industrial bodies.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2013
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