S&P cuts IDB rating by two levels

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S&P Maalot warns of "weak liquidity levels," in the wake of the sharp fall in the bond price of Nochi Dankner's IDB.

Standard & Poor's Maalot Ltd. responded this evening to the recent sharp fall in IDB Holding Corp. Ltd. (TASE:IDBH) bonds by cutting its credit rating two levels from A to BBB. IDB is controlled by Nochi Dankner. The rating of subsidiary IDB Development Corp. (TASE: IDBD) was also cut from A to BBB and the ratings agency gave both companies a "negative" outlook.

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However, S&P Maalot did reconfirm the A ratings of IDB subsidiaries Discount Investment Corporation (TASE: DISI), Koor Industries Ltd. (TASE:KOR) and Clal Industries although it did give Clal a negative outlook and warned of a possible downgrading in the near future.

S&P Maalot said that the downgrade was due to IDB's "weak liquidity levels."

Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2012