RAMAT GAN, Israel, February 9,
2016 /PRNewswire/ --
Internet Gold - Golden Lines Ltd.
(NASDAQ Global Market and TASE: IGLD) today announced that Midroog
Ltd., an Israeli rating company affiliated with Moody's
("Midroog") has raised the local rating of its Series C and
D Debentures from Baa1.il to A3.il, with a stable outlook.
Commenting on the news, Mr. Doron
Turgeman, the Company's CEO stated, "We are very pleased
with Midroog's announcement. Our debt structure has
significantly improved as indicated in the rating report, which
speaks for itself. In the quarters ahead, we will continue our
efforts to strengthen our financial stability and liquidity in
order to improve our debt and equity positions."
The following is a summary of primary considerations for
the rating, as indicated by Midroog:
A. The rating reflects the anticipated improvement
to the Company's liquidity profile in light of projected dividends
from its subsidiary, as reflected in the debt servicing ratios with
respect to the new rating, which are expected to range between 0.8
to 2.4 in the short and medium term.
B. The significant improvement in the Company's
financial leverage in light of the significant increase in the
value of B Communications Ltd. shares, which support the Company's
financial flexibility. Midroog also noted the anticipated
improvement in the coverage ratios as a result of the sale by B
Communications Ltd. of 4.2% of the shares of Bezeq and the
significant decrease in the net financial debt of B Communications.
Midroog estimates that the expanded net debt to EBITDA coverage
ratios are expected to range between 3.8 to 4.0.
C. The starting point for the new rating is the
debt rating of Bezeq. Such rating is supported by the strength of
the business and financial profile of Bezeq (Aa2 with a stable
outlook), which is the leading and largest communications group in
Israel, with the largest and most
advanced communications infrastructure in Israel.
D. Under its base scenario, an improvement occurred
in the dividend distribution potential of B Communications in light
of its existing and projected substantial liquidity balances. In
addition, B Communications' ability to increase its dividends to
its shareholders has become more certain in light of the positive
aggregate net profit in the last eight quarters, which allows B
Communications to distribute a more substantial part from its
unrestricted cash.
E. Internet Gold has a repayment schedule that is
divided in a relatively comfortable manner, and together with the
dividend assumptions, under Midroog's base scenario for each of the
companies in the group, the debt servicing ratios, including a
liquidity cushion in Internet Gold in the medium term, are expected
to range between 1.4 to 2.7. Midroog also indicated that the
current leverage level is still unsteady and may affect the
financial flexibility of Internet Gold.
The above description of Midroog's report is only a short
summary of the main points and it should not be relied upon as a
complete description of the full report. The full and report can be
viewed at http://maya.tase.co.il.
About Internet Gold
Internet Gold is a telecommunications-oriented holding company
which is a controlled subsidiary of Eurocom Communications Ltd.
Internet Gold's primary holding is its controlling interest in B
Communications Ltd. (TASE and Nasdaq: BCOM), which in turn holds
the controlling interest in Bezeq, The Israel Telecommunication
Corp., Israel's largest
telecommunications provider (TASE: BEZQ). Internet Gold's shares
are traded on NASDAQ and the TASE under the symbol IGLD. For more
information, please visit the following Internet sites:
http://www.igld.com
http://www.bcommunications.co.il
http://ir.bezeq.co.il
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to risks and uncertainties. Factors that could cause
actual results to differ materially from these forward-looking
statements include, but are not limited to, general business
conditions in the industry, changes in the regulatory and legal
compliance environments, the failure to manage growth and other
risks detailed from time to time in B Communications' filings with
the Securities Exchange Commission. These documents contain
and identify other important factors that could cause actual
results to differ materially from those contained in our
projections or forward-looking statements. Stockholders and
other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on
which they are made. We undertake no obligation to update publicly
or revise any forward-looking statement.
For further information, please contact:
Idit Cohen - IR Manager
idit@igld.com / Tel: +972-3-924-0000
Investor relations contacts:
Hadas Friedman - Investor
Relations
Hadas@km-ir.co.il / Tel: +972-3-516-7620
SOURCE Internet Gold - Golden Lines Ltd.