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CAP - Aa3il rating with a stable outlook for the issuance of commitment notes (Series 18 of PHOENIX FINANCIAL LTD Insurance Subsidiary) up to a total of 500 million NIS par value.

Company: The Phoenix Holdings Ltd. Date: 2025-08-28 Language: English Register to download
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Image alt: Phoenix Logo

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Image alt: Additional Symbol

# PHOENIX INSURANCE LTD.

#### Rating Action and August 2025

### Contacts:

- Michal Badinter Senior Analyst, Lead Rating Analyst [michal.b@midroog.co.il](http://#)
- Amit Federman, CPA Senior Team Leader, Secondary Rating Analyst [amit.federman@midroog.co.il](http://#)
- Moti Citrin, VP Head of Financial Institutions, Structured Finance and Additional Services [moty.c@midroog.co.il](http://#)

Midroog

# PHOENIX INSURANCE LTD.

Insurer Financial Strength Rating (IFS) Aaa.il Rating Outlook: Stable

#### Complex Subordinated Capital and Tier 2 Capital Instrument

Aa2.il(hyb) Rating Outlook: Stable

#### Additional Tier 1 Capital Instrument

Aa3.il(hyb) Rating Outlook: Stable

Midroog assigns a rating of Aa3.il(hyb) with a stable outlook for the additional Tier 1 capital raising (Series 18, up to NIS 500 million par value), which PHOENIX INSURANCE LTD. (hereinafter: "the Company") intends to raise through its subsidiary, Phoenix Capital Raising (2009) Ltd. The proceeds will be fully deposited in the Company and recognized as an additional Tier 1 capital instrument²⁰¹ in accordance with the provisions regarding the equity of an insurance company²⁰².

The ratings of the subordinated debts reflect the legal-contractual subordination of these debts relative to the IFS rating, the seniority ranking among the subordinated debts themselves, and the impact of the loss absorption mechanisms embedded in them. Considering the Company's IFS level, the current and expected economic solvency, in our assessment, while maintaining a sufficient margin from the effective regulatory economic solvency requirement for the instruments, we assess that the uncertainty regarding the likelihood of reaching "triggering circumstances"²⁰³ and the occurrence of a "trigger event"²⁰⁴ is low, and therefore, no additional notch was deducted for the additional Tier 1 capital instruments.

For information on the full rating considerations, please refer to the August 2025 monitoring report²⁰⁵.

The outstanding bonds rated by Midroog:

| Bond<br>Series                   | Security<br>Number | Rating      | Rating<br>Outlook | Recognized<br>Capital<br>Type      | Final<br>Maturity<br>Date |
|----------------------------------|--------------------|-------------|-------------------|------------------------------------|---------------------------|
| Phoenix<br>Capital<br>Bond<br>E  | 1135417            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital<br>¹          | 31/10/2029                |
| Phoenix<br>Capital<br>Bond<br>T  | 1155522            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 31/08/2029                |
| Phoenix<br>Capital<br>Bond<br>YA | 1159359            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 30/04/2032                |
| Phoenix<br>Capital<br>Bond<br>YG | 1188135            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 31/10/2032                |
| Phoenix<br>Capital<br>Bond<br>YD | 1201946            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 28/02/2033                |
| Phoenix<br>Capital<br>Bond<br>TU | 1201953            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 30/06/2033                |
| Phoenix<br>Capital<br>Bond<br>TZ | 1220334            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 01/11/2034                |
| Phoenix<br>Capital<br>Bond<br>YZ | 1220342            | Aa2.il(hyb) | Stable            | Tier<br>2<br>Capital               | 01/02/2035                |
| Phoenix<br>Capital<br>Bond<br>YB | 1195585            | Aa3.il(hyb) | Stable            | Additional<br>Tier<br>1<br>Capital | 05/02/2071                |

¹ Complex subordinated.

# Midroog

## Rating History

![](_page_4_Figure_2.jpeg)

Image alt: Rating History Graph

# Related Reports

| PHOENIX<br>INSURANCE<br>LTD.<br>-<br>Related<br>Reports                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PHOENIX<br>FINANCIAL<br>LTD<br>-<br>Related<br>Reports                                                                                                                                 |
| Life,<br>Health<br>and<br>General<br>Insurance<br>Companies<br>Rating<br>-<br>Methodological<br>Report,<br>May<br>2022                                                                 |
| Guidelines<br>for<br>Examining<br>Environmental,<br>Social<br>and<br>Corporate<br>Governance<br>Risks<br>in<br>Credit<br>Ratings<br>-<br>Methodological<br>Report,<br>February<br>2022 |
| Affiliations<br>Table<br>of<br>and<br>Holdings                                                                                                                                         |
| Definitions<br>Midroog's<br>Rating<br>Scales<br>and                                                                                                                                    |
| Reports<br>are<br>published<br>on<br>the<br>Midroog<br>website                                                                                                                         |

[www.midroog.co.il](http://#)

### General Information

| Rating<br>Report<br>Date:                       | 27.08.2025                   |
|-------------------------------------------------|------------------------------|
| Last<br>Rating<br>Update<br>Date:               | 24.08.2025                   |
| Date<br>of<br>Initial<br>Rating<br>Publication: | 28.10.2010                   |
| Name<br>of<br>Rating<br>Initiator:              | PHOENIX<br>INSURANCE<br>LTD. |

Name of Entity that Paid for the Rating: PHOENIX INSURANCE LTD.

## Information from the Issuer

Midroog relies in its ratings, among other things, on information received from authorized parties at the issuer.

| 3 | 27/08/2025 | PHOENIX<br>INSURANCE<br>LTD.<br>-<br>Rating<br>Action |
|---|------------|-------------------------------------------------------|
|---|------------|-------------------------------------------------------|

Midroog

Local Long-Term Rating Scale

| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>the<br>highest<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers.                                                                                        | Aaa.il |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>a<br>very<br>high<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers.                                                                                     | Aa.il  |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>a<br>high<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers.                                                                                             | A.il   |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>a<br>medium<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers<br>and<br>may<br>have<br>certain<br>speculative<br>characteristics.                        | Baa.il |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>a<br>weak<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers<br>and<br>have<br>speculative<br>characteristics.                                            | Ba.il  |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>a<br>very<br>weak<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers<br>and<br>have<br>significant<br>speculative<br>characteristics.                     | B.il   |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>the<br>weakest<br>credit<br>repayment<br>ability<br>relative<br>to<br>other<br>local<br>issuers<br>and<br>have<br>the<br>most<br>significant<br>speculative<br>characteristics.         | Caa.il |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>an<br>extremely<br>weak<br>credit<br>repayment<br>ability<br>and<br>are<br>very<br>close<br>to<br>default<br>with<br>some<br>chance<br>of<br>principal<br>and<br>interest<br>repayment. | Ca.il  |
| Issuers<br>or<br>issues<br>rated<br>display,<br>in<br>Midroog's<br>judgment,<br>the<br>weakest<br>credit<br>repayment<br>ability<br>and<br>are<br>generally<br>in<br>default<br>with<br>slim<br>chances<br>of<br>principal<br>and<br>interest<br>repayment.             | C.il   |

Note: Midroog uses numerical modifiers 1, 2, 3 in each rating category from Aa.il to Caa.il. Modifier '1' indicates that the bond is at the higher end of its rating category, as indicated by the letters. Modifier '2' indicates it is in the middle of the rating category, and modifier '3' indicates the bond is at the lower end of its rating category, as indicated by the letters.

4. 27/08/2025 PHOENIX INSURANCE LTD. - Rating Action

# Midroog

© All rights reserved to Midroog Ltd. (hereinafter: "Midroog").

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Midroog's ratings, non-credit risk assessments (hereinafter: "Midroog Assessments") or any opinion included in Midroog Materials, are not facts or historical data. Midroog Materials may also include quantitative assessments of credit risks, based on models, as well as opinions and comments regarding these assessments.

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Midroog's credit ratings, assessments and opinions and Midroog Materials are not intended for use as a "benchmark", as defined in the regulatory context, and should not be used in any way that may lead to them being considered a "benchmark".

### Midroog does not provide any warranty, express or implied, regarding the accuracy of any rating, assessment or other opinion or information provided or created by Midroog in any way, or regarding their correctness at a certain date, or regarding their completeness, merchantability or fitness for any purpose.

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- (A) for loss of profits in the present or future;
- (B) for loss or damage resulting from a financial instrument that was not the focus of a specific Midroog credit rating.

Subject to any law, Midroog and Midroog Personnel shall not be liable to any person or entity for any direct damage or loss arising from the information contained in this document, or from its use or inability to use it, including, among others, for damage or loss resulting from their negligence (except for fraud, willful misconduct or any other action for which the law does not allow exemption from liability), or from an unforeseen event, whether or not such event is under the control of Midroog or Midroog Personnel.

Midroog has adopted policies and procedures regarding rating independence and rating processes.

Any rating, assessment or opinion issued by Midroog may change as a result of changes in the information on which they were based and/or as a result of receiving new information and/or for any other reason. Where relevant, updates and/or changes in ratings appear on Midroog's website at [www.midroog.co.il.](http://#)

27/08/2025 PHOENIX INSURANCE LTD. - Rating Action

### FOOTNOTE:

²⁰¹ Subject to the maximum rate limitation (20%) of additional Tier 1 capital.

²⁰² Provisions regarding the equity of an insurance company, Part B

²⁰³ Required capital for "triggering circumstances" is defined as 80% of the required solvency ratio during the transition period, after adjusting the equity scenario according to the Solvency Circular (hereinafter: "required solvency ratio").

²⁰⁴ "Trigger event" occurs upon one of the following: (1) The equity of the insurance company, according to the financial statement prior to the last published financial statement, is lower than the required solvency capital (SCR), and no capital injection was made; (2) According to the last published financial statement, the solvency ratio is below 75% and no capital injection was made; (3) If there are significant doubts about the continued existence of the insurance company as a going concern.

²⁰⁵ The rating report appears on the Midroog website.