S&P affirms Israel Chemicals

S&P said it affirmed its BBB- long-term issuer credit rating on Israel Chemicals Ltd.

The outlook is stable.

The agency said that after completing the sale of its fire safety unit in March for gross proceeds of about $1 billion and decreasing its debt to banks by $800 million using the sale proceeds, S&P estimates that Israel Chemicals’ debt to EBITDA is likely to be 3 to 3.5 times in 2018-2019, commensurate with the current rating.

“In our view, despite having sold the profitable fire safety unit, the company's business risk profile continues to be underpinned by competitive advantages including direct access to a concentrated source of high-quality, low-cost raw materials in the Dead Sea,” S&P said in a news release.

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