S&P rates Israel Chemicals bonds BBB

Standard & Poor’s said it assigned a BBB long-term corporate credit rating to Israel Chemicals Ltd., along with a BBB rating to its proposed senior unsecured bonds.

The outlook is stable.

The ratings reflect the group’s intermediate financial risk profile and satisfactory business risk profile, S&P said.

The company has good scale and solid positions in its core markets, high profitability thanks to relatively low production and raw material costs, fairly diversified product range and broad revenue spread, the agency said.

On the negative side, Israel Chemicals is exposed to the inherent cyclicality and volatility of the commodity chemicals industry, S&P said.

In addition, capital expenditure in the industry to add capacity is significant, the process is time-consuming and returns are somewhat uncertain as they depend on industry conditions, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.