Fitch: Inkia amendments neutral to negative

Fitch Ratings said it expects Inkia Energy Ltd.'s (long-term issuer default rating BB/outlook negative) proposed amendments to the indenture governing its notes to be a neutral-to-negative credit event.

The agency said that rating actions may follow depending on the outcome of the solicitation and resulting changes in Inkia's credit profile.

Israel Corp. plans to spin off its international operations and other assets into a new holding company, Kenon, which will be the ultimate parent of Inkia, and Kenon will likely have a credit profile weaker than that of Israel Corp. since Israel Chemicals Ltd. ICL will remain under Israel Corp., Fitch noted.

Inkia's ratings incorporate the credit quality and historical parent support reflected on subordinated loans and payment of no upstream dividends, the agency added.

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