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CAP - Ma'alot rating '-ilAA' for the issuance of deferred commitment notes Series Ya, up to NIS 1.5 billion par value.

Company: Israel Discount Bank Ltd. Date: 2025-08-21 Language: English Register to download
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# ISRAEL DISCOUNT BANK LTD.

# DISCOUNT MANPIKIM LTD

August 21, 2025

## Issuance Rating

Assignment of '-ilAA' rating to the issuance of deferred notes with a loss absorption mechanism

for a total amount of up to NIS 1.5 billion par value.

#### Lead Credit Analyst:

Regina Argenio, Milan, 39-02-72111208 [regina.argenio@spglobal.com](http://#)

#### Additional Contacts:

- Matan Benjamin, Ramat Gan, 972-3-7539708 [matan.benjamin@spglobal.com](http://#)
- Hollegien Pierre, Paris, 33-14-0752513 [pierre.hollegien@spglobal.com](http://#)

S&P Maalot hereby announces the assignment of a '-ilAA' rating to the deferred notes with a loss absorption mechanism for a total amount of up to NIS 1.5 billion par value to be issued by ISRAEL DISCOUNT BANK LTD. (+ilAAA/Negative/ilA-1) through the issuance of a new series, Series 11.

In determining the rating of the deferred notes Series 11, we apply, among other things, the methodology for rating complex bank instruments and the methodology for determining ratings on the local scale. The starting point for the rating is the bank's Stand-Alone Credit Profile (SACP) and not its Issuer Credit Rating (ICR), which includes state support, as we do not expect these instruments to be affected by state support. We lower two rating notches as follows:

- One rating notch to reflect the built-in loss absorption mechanism in the instrument in the form of conversion of the deferred notes into bank shares upon the occurrence of one of the trigger events defined in its terms, namely a "capital loss absorption event" when the bank's Common Equity Tier 1 capital ratio falls below 5%, or a "non-viability event" defined as the earlier of a written notice from the Supervisor of Banks to the bank that conversion of the deferred notes is necessary, as without it, in the opinion of the Supervisor, the bank would reach the point of non-viability; or a written notice from the Supervisor to the bank of a decision to inject capital from the public sector, or equivalent support, without which the bank would reach the point of non-viability, as determined by the Supervisor (insolvency).
- One rating notch to reflect the contractual subordination of the instrument compared to the bank's more senior obligations (subordinated).

When examining the instrument in light of our methodology for complex instruments, we do not consider there to be additional default risks that justify further rating downgrades beyond those mentioned above. In particular, we note that the creditworthiness

Alt: Discount Bank logo

#### 1 | August 21, 2025 Issuance Rating

\*\*ISRAEL DISCOUNT BANK LTD.\*\*

The bank's current credit quality does not lead us to believe that the likelihood of regulatory intervention regarding Series 11 deferred notes, as described above, requires further rating downgrades.

For more details about ISRAEL DISCOUNT BANK LTD.'s rating and additional regulatory requirements, see the rating report from May 29, 2025. For further details about the instrument's rating methodology, please refer to the list of methodology articles in the

aforementioned rating report and the "Complex Bank Instruments Rating - Q&A, November 29, 2015" document.

#### ISRAEL DISCOUNT BANK LTD.

| Rating                | Date<br>of<br>Initial<br>Rating<br>Publication | Date<br>of<br>Last<br>Rating<br>Update |            |
|-----------------------|------------------------------------------------|----------------------------------------|------------|
| Issuer<br>Rating(s)   |                                                |                                        |            |
| Long<br>Term          | ilAAA\Negative                                 | 01/09/2003                             | 29/05/2025 |
| Short<br>Term         | ilA-1+                                         | 04/12/2019                             | 29/05/2025 |
| Issuance<br>Rating(s) |                                                |                                        |            |

| Issuer<br>Rating<br>History |                |  |
|-----------------------------|----------------|--|
| Long<br>Term                |                |  |
| October<br>31,<br>2023      | ilAAA\Negative |  |
| July<br>11,<br>2019         | ilAAA\Stable   |  |
| December<br>20,<br>2016     | ilAA+\Stable   |  |
| December<br>24,<br>2014     | ilAA\Stable    |  |
| December<br>16,<br>2010     | ilAA-\Stable   |  |
| May<br>06,<br>2009          | ilAA-\Negative |  |
| December<br>09,<br>2007     | ilAA\Stable    |  |
| December<br>20,<br>2006     | ilAA-\Stable   |  |
| October<br>13,<br>2004      | ilAA           |  |
| March<br>13,<br>2004        | ilAA           |  |
| September<br>01,<br>2003    | ilAA           |  |
| Short<br>Term               |                |  |
| December<br>24,<br>2019     | ilA-1+         |  |

#### 2 | August 21, 2025

Issuance Rating

Links:

- Rating [Report](http://#) from May 29, 2025
- Complex Bank [Instruments](http://#) Rating Q&A, November 29, 2015

#### ISRAEL DISCOUNT BANK LTD.

| DISCOUNT<br>MANPIKIM<br>LTD                                                  | Rating                | Date<br>of<br>Initial<br>Rating<br>Publication | Date<br>of<br>Last<br>Rating<br>Update |  |  |  |
|------------------------------------------------------------------------------|-----------------------|------------------------------------------------|----------------------------------------|--|--|--|
| Issuer<br>Rating(s)                                                          |                       |                                                |                                        |  |  |  |
| Long<br>Term                                                                 | ilAAA\Negative        | 01/09/2003                                     | 29/05/2025                             |  |  |  |
| Short<br>Term                                                                | ilA-1+                | 04/12/2019                                     | 29/05/2025                             |  |  |  |
|                                                                              | Issuance<br>Rating(s) |                                                |                                        |  |  |  |
| Complex<br>Subordinated<br>Debt                                              |                       |                                                |                                        |  |  |  |
| Series<br>6<br>Deferred<br>Notes<br>with<br>Loss<br>Absorption<br>Mechanism  | ilAA-                 | 02/10/2019                                     | 29/05/2025                             |  |  |  |
| Series<br>7<br>Deferred<br>Notes<br>with<br>Loss<br>Absorption<br>Mechanism  | ilAA-                 | 02/06/2020                                     | 29/05/2025                             |  |  |  |
| Series<br>8<br>Deferred<br>Notes<br>with<br>Loss<br>Absorption<br>Mechanism  | ilAA-                 | 10/11/2021                                     | 29/05/2025                             |  |  |  |
| Series<br>9<br>Deferred<br>Notes<br>with<br>Loss<br>Absorption<br>Mechanism  | ilAA-                 | 10/11/2022                                     | 29/05/2025                             |  |  |  |
| Series<br>10<br>Deferred<br>Notes<br>with<br>Loss<br>Absorption<br>Mechanism | ilAA-                 | 18/08/2024                                     | 29/05/2025                             |  |  |  |
| Short<br>Term<br>Debt                                                        |                       |                                                |                                        |  |  |  |
| Commercial<br>Papers<br>Series<br>4                                          | ilA-1+                | 18/08/2024                                     | 29/05/2025                             |  |  |  |
| Commercial<br>Papers<br>Series<br>5                                          | ilA-1+                | 29/12/2024                                     | 29/05/2025                             |  |  |  |
| Commercial<br>Papers<br>Series<br>6                                          | ilA-1+                | 19/05/2025                                     | 29/05/2025                             |  |  |  |
| Senior<br>Unsecured<br>Debt                                                  |                       |                                                |                                        |  |  |  |
| Series<br>16                                                                 | ilAAA                 | 02/01/2024                                     | 29/05/2025                             |  |  |  |
| Series<br>14                                                                 | ilAAA                 | 05/12/2018                                     | 29/05/2025                             |  |  |  |
| Series<br>15                                                                 | ilAAA                 | 10/11/2021                                     | 29/05/2025                             |  |  |  |
| Series<br>17                                                                 | ilAAA                 | 29/12/2024                                     | 29/05/2025                             |  |  |  |
| Subordinated<br>Debt                                                         |                       |                                                |                                        |  |  |  |

| Series<br>11<br>Deferred<br>Notes |       |            |            |
|-----------------------------------|-------|------------|------------|
| with                              | ilAA- | 21/08/2025 | 21/08/2025 |
| Loss<br>Absorption<br>Mechanism   |       |            |            |

| Additional<br>Details           | Data                    |
|---------------------------------|-------------------------|
| Time<br>of<br>Event             | 21/08/2025<br>15:30     |
| Time<br>Event<br>First<br>Known | 21/08/2025<br>15:30     |
| Rating<br>Initiator             | The<br>Rated<br>Company |

3 | August 21, 2025 | Issuance Rating

\*\*ISRAEL DISCOUNT BANK LTD.\*\*

S&P Maalot is the trade name of "S&P Global Ratings Maalot Ltd." For the most updated list of ratings and more information about the credit rating monitoring policy, please refer to the S&P Global Ratings Maalot Ltd. website at [www.maalot.co.il](http://#)

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4. | August 21, 2025 | Issuance Rating