TEL-AVIV, Israel, March 19, 2015 /PRNewswire/ --
Ellomay Capital Ltd. (NYSE MKT: ELLO; TASE: ELOM)
("Ellomay" or the "Company"), announced today that
Standard & Poors Maalot Ltd. ("Maalot") reaffirmed the
rating of ilA-assigned to the Company's Series A Nonconvertible
Debentures (the "Debentures") traded on the Tel Aviv Stock
Exchange and reaffirmed the "Stable" outlook.
In its rating report (issued in Hebrew and available at:
http://www.maalot.co.il/publications/3781/OTREll20150318164632.pdf
), Maalot notes, among other things, as follows:
- Ellomay's rating is underpinned by the relatively low degree of
leverage at the project level and hence at the holding company's
level; by few limitations on the distribution of excess cash from
projects in the portfolio; and by an 'adequate' liquidity profile,
that is characterized by a flat debt amortization schedule.
- On the other hand, Ellomay's rating is restricted by a high
concentration of held assets, given that the majority of
income-producing projects (about 51% of cash flows) are located in
Italy, and due to the reliance
most revenues from held projects on tariffs set by regulators in
countries with unstable regulatory environments.
- The stable outlook reflects Maalot assessment that the cash
from the owned projects, together with the liquidity cushion, will
be resilient in the short term to potential changes in regulation
in Italy and Spain, and to the uncertainty regarding the
time and magnitude of receipts from the Dorad power plant
("Dorad"). Maalot further believes that management will
ensure debt coverage ratios commensurate with the current rating,
by implementing its investment plan.
- Maalot believe that the stability of cash flows from the
projects and its ability to forecast them is 'moderate'. These
assessments are based largely on the quality of cash flows at the
independent project level on the one hand, and on the relatively
low level of investment diversification on the other.
- According to Maalot's base-case scenario, in the period
2015-2019, about 51% of Ellomay's cash flows will derive from
projects in Italy, about 29% from
Dorad, and about 20% from projects in Spain. According to our forecast, about 71% of
company cash flows will derive from PV plants, and the rest from
power stations powered by natural gas (Dorad).
- In accordance with Maalot criteria, the level of liquidity of
the company is `adequate`. Maalot estimates the ratio between the
sources of cash flow to its uses to be greater than 1.4x in the
period 2015-2016.
- In their base-case operating scenario, Maalot considered
investments known at the point of forecast and whose chance of
execution is relatively high. Nonetheless, Ellomay may carry out
additional investments in 2015-2016, whose effect on the financial
ratios and liquidity profile will be assessed as they occur.
- The stable outlook reflects our assessment that cash flows from
held projects, coupled with the liquidity cushion, will be
resilient, in the short term, to possible regulatory changes in
Italy and Spain, and to some uncertainty regarding the
timing and scale of returns from the Dorad investment, and that the
company's management will maintain debt coverage ratios in line
with the current rating, by means of implementing its investment
plan.
- Downside Scenario - A deterioration in the company's
liquidity profile, resulting from a change in policy regarding its
cash cushion or from aggressive investments, is likely to
precipitate a negative rating action. Also, an additional decline
in expected cash flows from projects, including returns from the
Dorad investment, could lead to a negative rating action through a
worsening of financial ratios.
- Upside Scenario - A positive rating action would result
if expected returns from Dorad materialize in line with the
company's expectations, while maintaining the cash cushion, and
provided the company continues to stand by its investment policy in
and to repay its debt. In this case, we expect an improvement in
Ellomay's financial profile that would lend itself to a positive
rating action.
The foregoing are only excerpts of the rating report and you
are urged to read the rating report in its entirety. An unofficial
translation to English of the Maalot report will be uploaded to the
"Investor Relations" section of the Company's website.
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. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy any Debentures.
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE MKT, under the trading symbol "ELLO" and with the Tel
Aviv Stock Exchange under the trading symbol "ELOM." Since
2009, Ellomay Capital focuses its business in the energy and
infrastructure sectors worldwide. Ellomay (formerly Nur
Macroprinters Ltd.) previously was a supplier of wide format and
super-wide format digital printing systems and related products
worldwide, and sold this business to Hewlett-Packard Company during
2008 for more than $100 million.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approximately 22.6MW of photovoltaic power plants in
Italy, approximately 5.6MW of
photovoltaic power plants in Spain
and 85% of approximately 2.3MW of photovoltaic power plant in
Spain; and
- 7.5% indirect interest, with an option to increase its holdings
to 9.375%, in Dorad Energy Ltd., which owns and operates
Israel's largest private power
plant with production capacity of approximately 850 MW,
representing about 6%-8% of Israel's total current electricity
consumption.
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich.
Mr. Nehama is one of Israel's
prominent businessmen and the former Chairman of Israel's leading bank, Bank Hapohalim, and
Messrs. Raphael and Fridrich both have vast experience in financial
and industrial businesses. These controlling shareholders, along
with Ellomay's dedicated professional management, accumulated
extensive experience in recognizing suitable business opportunities
worldwide. The expertise of Ellomay's controlling shareholders
and management enables the company to access the capital markets,
as well as assemble global institutional investors and other
potential partners. As a result, we believe Ellomay is capable
of considering significant and complex transactions, beyond its
immediate financial resources.
For more information about Ellomay, visit
http://www.ellomay.com.
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" 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, whether referenced or not
referenced in this press release. 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