This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ampal-American Israel Corporation Debentures Downgraded By Midroog To BAA1 With A Negative Outlook

Ampal-American Israel Corporation (NASDAQ: AMPL) announced today that Midroog Ltd. ("Midroog"), an affiliate of Moody's Investors Service, has downgraded Ampal's Series A, Series B and Series C Debentures (the "Debentures") ratings by one notch to BAA1 from A3, and classified its outlook as negative. The Debentures remain on Midroog's "Watchlist”.

In its report, Midroog stated that the downgrade was due to the on-going geo-political environment uncertainties in the region in which East Mediterranean Gas Company S.A.E. (“EMG”) operates, and is further substantiated by the downgrade of the State of Egypt's credit rating. Midroog noted that EMG constitutes a substantial portion of Ampal's portfolio and factors significantly into Ampal's expected future cash flow.

Midroog also noted that as announced, since February 5, 2011, the gas supply from Egypt to Israel has been halted, and resumption is expected no later than March 4, 2011. The Debentures’ ratings will remain on Midroog's "Watchlist" until it becomes evident that continuous gas flow can be sustained over a period of time. Midroog further stipulated that the current rating does not reflect a situation in which gas supply will not resume shortly.

Midroog further estimates that the aforesaid might have an effect on Ampal's total assets and financial stability to a degree that cannot currently be estimated.

However, Midroog believes the closing of the sale of 012 Smile will substantially benefit Ampal's liquidity, and will improve risk assessment on a short term basis.

Mr. Yosef A. Maiman, Chairman, President and Chief Executive Officer of Ampal commented on Midroog's report: "I believe that the downgrading of Egypt's credit rating should have no implication on EMG's business risk profile, as Egypt's interest in foreign currency income remains."

Mr. Maiman continued: "In recent months, Ampal's asset value and liquidity has increased. Furthermore, the market yield of Ampal's Debentures reflect the public's trust in Ampal, its subsidiaries and the resumption and continued gas supply by EMG."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs