S&P upgrades Israel Electric

Standard & Poor’s said it raised the long-term corporate credit rating on Israel Electric Corp. to BBB- from BB+.

The outlook is stable.

The upgrades reflect an opinion that the company’s financial position has stabilized following the 2011 to 2013 fuel crisis, S&P said, and that its credit metrics will moderately improve over the medium term, supported by tariff increases and a de-leveraging strategy.

The company’s liquidity is now considered adequate following the company’s adoption of more conservative liquidity management, the agency said.

The company also is expected to soon sign about Israeli shekel 1 billion of committed facilities with banks, S&P said.

Furthermore, the agency said it believes that credit metrics will meaningfully improve from 2014 as tariffs aimed at recovering increased fuel costs take effect and the company implements its de-leveraging strategy.

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