TEL-AVIV, Israel, Jan. 23, 2014 /PRNewswire/ -- Ellomay Capital
Ltd. (NYSE MKT: ELLO; TASE: ELOM) ("Ellomay" or the
"Company"), announced today that Standard & Poors Maalot
Ltd. ("Maalot") reaffirmed the "ilA-/Stable" rating assigned
to the Series A Nonconvertible Debentures (the "Debentures")
offered by the Company in Israel
and traded on the Tel Aviv Stock Exchange.
In its rating report (issued in Hebrew and available at:
http://www.maalot.co.il/publications/3781/OTREll20131230161421.pdf),
Maalot notes as follows:
- That the rating is positively affected by relatively low
leverage, few limitations on the distribution of surpluses and a
flat amortization schedule of the financial debt, and that the
rating is constrained by a high concentration of the held assets,
with most (60%) of the yielding projects in Italy and the reliance of the Company on
dividend flows from projects in Italy and Spain of which revenues rely on regulated
tariffs, in light of the tariff uncertainty and unstable regulatory
environment in these countries. Maalot notes in its report the
recent changes in regulation in both Spain, which introduced changes in the manner
of the tariff calculation and Italy that announced an intention to
significantly lower the minimal spot energy price to small
photovoltaic facilities (which account for approximately 30% of the
Company's PV plants in Italy),
creating a risk of exposure of approximately 3% of the Company's
future revenues to market prices.
- That the Company's indirect holdings in the Dorad power plant,
which is currently in the final stages of construction, represents
the project with the highest quality in the Company's portfolio in
terms of credit risk but that there is uncertainty with regard to
the extent and timing of the dividends that the Company is expected
to receive from this project commencing 2015.
- That based on its assumptions, the sources to uses ratio of the
Company shall exceed 1.4 in 2014, and therefore the Company shall
have the capability to absorb, to a certain extent, negative
changes in the regulatory environment or the business environment
in the countries in which it operates, while continuing to service
its debt. The base-case scenario presented by Maalot is based on
assumption with respect to sources in 2014-2015 (cash and financial
assets in the amount of approximately $10
million, revenues from repayment of shareholder's loans,
management fees and dividends in the aggregate amount of
approximately $14 million and the
planed Debenture issuance of approximately $34 million) and with respect to uses in
2014-2015 (repayment of bank loan of approximately $17.5 million, Debenture repayments of
approximately $7 million, interest
expenses of approximately $3.5
million, general and administrative expenses of
approximately $6 million, investments
in increasing the Company's stake in existing projects of
approximately $7 million and a
dividend distribution of $2
million).
The foregoing is only a summary of the rating report and you
are urged to read the rating report in its entirety.
A security rating is not a recommendation to buy, sell or
hold securities, it may be subject to revision or withdrawal at any
time by the assigning rating organization, and each rating should
be evaluated independently of any other rating.
The public offering described in this press release was made
in Israel, to residents of
Israel only, and not to U.S.
persons. The Debentures will not be registered under the U.S.
Securities Act of 1933, as amended, and will not be offered or sold
in the United States without
registration or applicable exemption from the registration
requirements according to the U.S. Securities Act of 1933, as
amended. This press release shall not constitute an offer to sell
or the solicitation of an offer to buy any Debentures.
About Ellomay Capital
Ellomay is an Israeli public company whose shares are listed on
the NYSE MKT stock exchange and on the Tel Aviv Stock Exchange,
which focuses its business in the energy and infrastructure sectors
worldwide and is chaired by Mr. Shlomo
Nehama, former Chairman of Bank Hapoalim, and controlled by
Mr. Nehama and Kanir Joint Investments (2005) Limited Partnership,
which is controlled by Mr. Ran Fridrich and Mr. Hemi Raphael.
Ellomay's main assets include twelve photovoltaic plants in
Italy with an aggregate nominal
capacity of approximately 22.6 MWp (six in the Puglia Region, four
in the Marche Region and two in the Veneto Region), 85% ownership
of a photovoltaic plant in Spain
with a capacity of approximately 2.3 MWp, and 7.5% indirect
holdings in Dorad (with an option to increase such holdings to
9.375%), Israel's largest private
power plant, which is in the final stages of construction and is
expected to have an aggregate capacity of approximately 800MW
(representing approximately 8% of Israel's current electricity consumption).
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties, including statements
that are based on the current expectations and assumptions of the
Company's management. All statements, other than statements of
historical facts, included in this press release regarding the
Company's plans and objectives, expectations and assumptions of
management are forward-looking statements. The use of certain
words, including the words "estimate," "project," "intend,"
"expect," "believe," "anticipate," "will," "plan," "could," "may"
and similar expressions are intended to identify
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The Company may not
actually achieve the plans, intentions or expectations disclosed in
the forward-looking statements and you should not place undue
reliance on the Company's forward-looking statements. Various
important factors could cause actual results or events to differ
materially from those that may be expressed or implied by our
forward-looking statements. These and other risks and uncertainties
associated with the Company's business are described in greater
detail in the filings the Company makes from time to time with
Securities and Exchange Commission, including its Annual Report on
Form 20-F. The forward-looking statements are made as of this date
and the Company does not undertake any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: anatb@ellomay.com
SOURCE Ellomay Capital Ltd.