“ILDC completed a number of actions in recent years that have improved the coverage and leverage ratios. In the next two years a gradual improvement in coverage ratios is expected to be continued, following actions to increase EBITDA and stability in financial expenses
Maalot indicates that implementation of the company’s business plan, will enable further improvement of the Company’s financial position.
The credit rating company, Maalot S&P, raised today the rating of ILDC from ‘ilBBB+’ to ‘ilA-‘ ‘with a stable outlook. The raise is due to a number of actions taken by the Company in recent years, which led to continuous improvement in its financial risk profile as reflected in improving coverage ratios and leverage, such as an increase in NOI of major rental properties in Israel and Poland, reducing administrative expenses, selling assets and deleveraging, sales of assets which their process of maturity was completed and are not part of the core businesses and continuing of improvement of the Company’s assets in Israel that will increase the capital base.
Maalot notes that the Company has carried out actions that have resulted in increasing of cash flow including the sale of apartments in Poland and the sale of a number of historical lands at market prices. In addition, ILDC has, in recent years, refinanced expensive loans of over NIS 1.5 billion, which resulted in reducing financial expenses.
As a result of these actions, Maalot estimates that, in so far as the company will continue to implement its business plan to continue to perform similar operations, there will be further improvement in its financial position. Moreover, Maalot estimates that in the next two years a continuing gradual improvement in coverage ratios is expected, following continuing actions to increase the EBITDA and stabilize financial expenses. In addition, continuing gradual improvement in leverage ratios is expected, due to actions to stabilize the level of debt and increase capital base.
Maalot S&P also noted in its considerations, that “rating is positively influenced by successful adoption of financial policy that is committed to maintaining present leverage rate. The stable outlook reflects our expectations for stability in the financial ratios and in the business risk profile in the coming year. ILDC’s policy of maintaining high cash balances over a course of time, contributes to its financial flexibility. Also, ILDC enjoys additional financial flexibility due to the great amount of lands it owns in Israel, some of which are realized every year in accordance with its business strategy. “