TEL-AVIV, Israel, November 14, 2017 /PRNewswire/ --
Ellomay Capital Ltd. (NYSE American; TASE: ELLO)
("Ellomay" or the
"Company") an emerging operator in the
renewable energy and energy infrastructure sector, today announced
that Standard & Poors Maalot Ltd. ("Maalot") updated on
November 13, 2017 the rating of the
Company and of the Company's Series A and Series B Nonconvertible
Debentures traded on the Tel Aviv Stock Exchange from "ilA-" with a
"Negative" outlook to "ilBBB+" with a "Stable" outlook.
The rating report (issued in Hebrew) is available at:
http://www.maalot.co.il/Publications/3781/FREll20171113171849.pdf.
In its report, Maalot notes, among other things, that the rating
downgrade is based on Maalot's expectation that the Company will
present an FFO to adjusted debt ratio in the range of 9%-12% in the
upcoming years, following the 2016 FFO to adjusted debt ratio of
approximately 5%, which was due to a decrease in radiation and an
increase in expenses. Maalot notes further that it expects an
improvement of this ratio in the upcoming years as a result of the
return of the photovoltaic radiation levels in Italy and Spain to the historic levels and the
introduction of additional projects to the Company's portfolio.
Maalot notes that its projections concerning future FFO to adjusted
debt ratio are based on the uncertainty around the spot prices in
Italy and Spain, which represent up to approximately 20%
of the Company's revenues from these countries, and the the Talmei
Yosef project, which while contributing additional income is also
significantly leveraged. Maalot notes in its report that based on
its criteria the Company's liquidity level is appropriate.
Pursuant to the terms of the Company's Series B Debentures, this
rating downgrade triggers an increase of 0.25% in the annual
interest rate payable on the principal of these Debentures as will
be more fully described in a Form 6-K furnished to the Securities
and Exchange Commission on November 14,
2017. The annual interest rate payable on the principal of
the Company's Series A Debentures will remain unchanged.
The foregoing is only a general description of certain
issues raised in 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.
Ran Fridrich, CEO and a board member of Ellomay commented:
"Ellomay is in a period of meaningful expansion and investments in
new projects. This period is characterized by increased financing
that is expected to be followed by an increase in income. Maalot's
rating downgrade was based on assumptions that are not consistent
with the expectations of Ellomay's management, and Ellomay will
continue to strive to improve its debt rating based on its
operations and projections."
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE American and with the Tel Aviv Stock Exchange under
the trading symbol "ELLO". 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 7.9MW of
photovoltaic power plants in Spain
and a photovoltaic power plant of approximately 9 MW in
Israel;
- 9.375% indirect interest in Dorad Energy Ltd., which owns
and operates one of Israel's
largest private power plants with production capacity of
approximately 850 MW, representing about 6%-8% of Israel's total current electricity
consumption;
- 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and
Ellomay Pumped Storage (2014) Ltd., all of which are involved in a
project to construct a 340 MW pumped storage hydro power plant in
the Manara Cliff, Israel;
- 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V.,
project companies developing anaerobic digestion plants with a
green gas production capacity of approximately 375 Nm3/h, in Goor,
the Netherlands and 475 Nm3/h, in
Oude Tonge, the Netherlands,
respectively.
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. Ellomay
believes 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
the Company's forward-looking statements including changes in
regulation, seasonality of the PV business and market conditions.
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: miria@ellomay.com
SOURCE Ellomay Capital Ltd