S&P cuts IDB credit rating
Standard & Poor's Maalot responds to recent plunge in IDB bonds, sets rating for Nochi Dankner's holding group at BBB
The S&P Maalot credit rating agency announced Sunday it was downgrading the credit rating for several companies in Nochi Dankner's IDB Group by two levels from A to BBB following a recent sharp fall in IDB bonds.
S&P Maalot said that the downgrade was due to IDB's "weak liquidity levels" and limited financial flexibility.
A senior IDB official said that the downgrade "offers a rational perspective on our status."
The rating of subsidiary IDB Development Corp. was also lowered from A to BBB and the ratings agency gave both companies a "negative" outlook.
Last April, IDB Holdings presented its annual performance report for 2011, summing up what has been called the consortium's toughest year yet, as the company noted a NIS 3.24 billion loss ($873 million) in 2011.
