Shikun & Binui Assigned 'BB' Corporate Credit Rating by Standard & Poors

AIRPORT CITY, Israel, January 7, 2015 /PRNewswire/ --

Shikun & Binui Ltd (TASE: SKBN.TA) announced that on December 30, 2014, Standard & Poors (S&P) granted the Company a corporate credit rating of BB (with stable outlook). This is in addition to the current credit rating in the local market in Israel by S&P Maalot of iIA+.

S&P's report can be found under the filings of the Company with the Tel Aviv Stock Exchange, at the following link:

http://mayafiles.tase.co.il/RPdf/940001-941000/P940569-00.pdf

The background to this decision was outlined in a research report published by S&P.  

S&P mentioned that it views Shikun & Binui's business risk profile as "fair," reflecting an exposure to moderately high industry and country risks in its engineering and construction division, mitigated by the company's long track record, leading position in its core activities, and strong leadership in residential development in Israel. It views the Company's financial risk profile is "aggressive," reflecting Shikun & Binui's leverage measures of 4.0x-4.5x debt/EBITDA and 2.5x-3.0x EBITDA/interest coverage.

S&P mentioned that it views Shikun & Binui's asset base as supportive of the rating, mainly based on Shikun & Binui's ownership of the largest private land bank in Israel and its stakes in stable concession projects.

S&P's outlook for Shikun & Binui's credit rating is stable, reflecting their view that the company's growth plan for the next two years will be accompanied by a partial realization of some of the company's assets to balance its leverage.

Chairman of Shikun & Binui, Moshe Lachmani, commented, "The gain of the first international credit rating agency to cover our business, supports our strategy of becoming a leading global infrastructure and real estate group. As a leading group, we were the first in the local market to widely implement green building codes and standards, while integrating sustainability values throughout our business operations. We believe that the new international credit rating for Shikun & Binui, allows us to open and significantly broaden our activities in more international markets."

Shikun & Binui CEO, Ofer Kotler, commented: "The achievement of an international credit rating is another step in our business activity. The rating reflects our abilities, experience and our financial strength, and supports our ability to successfully operate our business in global manner covering the real estate, infrastructure, energy and water, and  concession segments."

Chief Financial Officer, Tal Raz, added: "Shikun & Binui conducts its business in a conservative manner, so even during periods of capital market volatility, we have continued to enjoy a positive financial track record which was a crucial factor in achieving the international credit rating, and we intend to continue in this manner in the future. The rating represents and reflects our financial strength and the confidence of the rating agency in our business."

About Shikun & Binui Group 

The "Shikun & Binui" Group is a global construction and infrastructure company engaged within and outside of Israel in seven operating segments: 1) infrastructures and construction contracting outside of Israel; 2) infrastructures and construction contracting in Israel; 3) real estate development in Israel; 4) real estate development outside of Israel; 5) renewable energy; 6) concessions; and 7) water.  The Company's activities include mainly large-scale highly-complex projects for the private and public sectors, which integrate the concept of sustainability. 

This announcement was prepared solely for summation and convenience and does not replace a review of the reporting of Shikun & Binui Ltd. (hereafter - "the Company").  The information contained in this announcement, which deals with the Company, is, by its nature incomplete and all of its contents are a supplement to and subject to that stated in the Company's remaining reporting.  This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968).  The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation. 

It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments.  Forward-looking information is uncertain and for the most part, is not under the Company's control.  The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations.  The Company's future results and achievements could differ significantly from those presented in this presentation.  The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement.  This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers.  An investment in securities in general, and in the Company in particular, carries risk.  One must take into account that past data do not necessarily indicate future performance. 

IR Contacts 

Company
Inbal Uliansky    
+972 (3) 6301058 
[email protected] 

External IR
Ehud Helft/Kenny Green
GK Investor Relations
+1 617 418 3096
[email protected]

SOURCE Shikun & Binui Ltd.