S&P rates Delek notes BBB-

Standard & Poor's said it assigned its preliminary BBB- rating to the proposed $275 million of senior secured notes maturing Aug. 1, 2013 to be issued by Israel-based Delek & Avner - Yam Tethys Ltd.

The outlook is stable.

The notes will be issued in two tranches: a fixed-interest-rate tranche and a floating-interest-rate tranche, with the exact size of each tranche still to be determined subject to the $275 million aggregate size.

The Yam Tethys venture, an unincorporated joint venture, owns and operates an offshore gas production facility off the coast of Israel (foreign currency A-/stable/A-1; local currency A+/stable/A-1). Natural gas is drawn from the Mari-B reservoir off the Israeli coast and is sold through a 10-year take-or-pay gas sale and purchase agreement (GSPA) to state-owned Israel Electric Corp. Ltd. (foreign currency BBB+/negative/--).

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