Regulatory Filings • Apr 7, 2024
Regulatory Filings
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04 APR 2024
Fitch Ratings - London - 04 Apr 2024: Fitch Ratings has removed the support-driven Long-Term Issuer Default Ratings (IDRs) of four Israeli banks from Rating Watch Negative (RWN) following similar action on the sovereign, and affirmed the Long-Term IDRs at 'A'. The Outlooks are Negative. The banks' 'F1+' Short-Term IDRs, their 'a' Government Support Ratings (GSRs), and their 'A' senior debt ratings, where relevant, were also removed from RWN and affirmed. A full list of rating actions is below.
The banks' 'a-' Viability Ratings (VRs) and other ratings are not affected by the sovereign rating action.
For additional details on the sovereign rating action see "Fitch Removes Israel from Rating Watch Negative; Affirms IDR at 'A+' with Negative Outlook" dated 2 April 2024.
The IDRs, GSRs and, where relevant, senior debt ratings of Bank Leumi Le-Israel B.M., Bank Hapoalim B.M., Mizrahi Tefahot Bank Ltd and Israel Discount Bank Limited reflect our view of a very high probability that Israel (A+/Negative/F1+) would support the banks, if needed. Fitch assesses Israel's propensity to support these banks as very high, particularly given their systemic importance, as each represents between 15% and 30% of banking system assets.
A downgrade of the sovereign rating is likely to result in a downgrade of the banks' GSRs, IDRs and senior debt ratings (where relevant). A significant weakening in the sovereign's ability to support the banking sector could also result in a downgrade of the banks' GSRs and IDRs.
An upgrade of the IDRs is unlikely due to the Negative Outlook on the sovereign's Long-Term IDR, as the banks' IDRs are driven by sovereign support.
The principal sources of information used in the analysis are described in the Applicable Criteria.
The banks' IDRs and GSRs reflect Fitch's expectation of a very high probability of state support from Israel.
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Michael Bojko, CFA Director Primary Rating Analyst +44 20 3530 2723 Fitch Ratings Ltd 30 North Colonnade, Canary Wharf London E14 5GN
Senior Analyst Secondary Rating Analyst +44 20 3530 1919
Senior Director Committee Chairperson +33 1 44 29 91 21
London +44 20 3530 1103 [email protected]
| ENTITY/DEBT | RATING | RECOVERY | PRIOR | ||
|---|---|---|---|---|---|
| Bank Leumi Le-Israel B.M. |
LT IDR | A | Affirmed | A | |
| ST IDR | F1+ | Affirmed | F1+ | ||
| Government Support |
a | Affirmed | a | ||
| • senior unsecuredLT |
A | Affirmed | A | ||
| • senior |
unsecuredLT (xgs) | A-(xgs) | Affirmed | A-(xgs) |
| ENTITY/DEBT | RATING | RECOVERY | PRIOR | ||
|---|---|---|---|---|---|
| • USD 500 mln 5.125% bond/ note 27-Jul-2027 |
LT (xgs) IL0060406878 |
A-(xgs) | Affirmed | A-(xgs) | |
| Bank Hapoalim B.M. |
LT IDR | A | Affirmed | A | |
| ST IDR | F1+ | Affirmed | F1+ | ||
| Government Support |
a | Affirmed | a | ||
| Israel Discount Bank Limited |
LT IDR | A | Affirmed | A | |
| ST IDR | F1+ | Affirmed | F1+ | ||
| Government Support |
a | Affirmed | a | ||
| • senior unsecuredLT |
A | Affirmed | A | ||
| Mizrahi Tefahot Bank Ltd |
LT IDR | A | Affirmed | A | |
| ST IDR | F1+ | Affirmed | F1+ |
| ENTITY/DEBT | RATING | RECOVERY | PRIOR | ||
|---|---|---|---|---|---|
| Government Support |
a | Affirmed | a | ||
| RATINGS KEY | OUTLOOK | WATCH | |||
| POSITIVE | |||||
| NEGATIVE | |||||
| EVOLVING | |||||
| STABLE |
Bank Rating Criteria (pub.15 Mar 2024) (including rating assumption sensitivity)
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