Credit rating agency Ma'alot S&P has raised the debt rating outlook for Partner

Credit rating agency Ma'alot S&P has raised the debt rating outlook for Partner, one of Israel's leading companies, from stable to positive. The company's credit rating remains high at A plus Israeli. This upgrade in the rating forecast comes as a result of Partner's continued efforts to reduce its debt and mature its infrastructure investments, leading to a decrease in total investment volume.

One of the key factors contributing to the positive outlook is Partner's commitment to maintaining a strong profitability ratio (EBITDA) of 25%. Analysts at S&P have noted that the company managed to improve its EBITDA to 27.5% in the previous year, showcasing sustainable financial performance with continuity.

However, the credit rating company also highlights potential challenges for Partner in the near future. Competition in the multi-channel television sector is eroding margins, while revenues from international calls are declining. Despite these obstacles, S&P believes that the company will be able to offset these losses with an increase in revenues from the fiber Internet segment. The surge in customers is attributed to an agreement with Bezeq, through which Partner acquired significant bandwidths, allowing for the attraction of new customers.

An important metric for Partner is its debt level, which stood at NIS 1.6 billion as of the end of 2022. With a debt of NIS 400 million, the company will need to carefully manage its financing expenses and maintain its ability to raise funds from the market if required.

Overall, Ma'alot S&P's positive outlook reflects confidence in Partner's ability to navigate challenges and continue on a path of financial improvement. The company's strategic focus on reducing debt, expanding in the fiber Internet segment, and sustaining profitability has garnered praise from the credit rating agency.

As the situation unfolds, Partner's stakeholders will be closely monitoring its progress and strategic initiatives to ensure sustainable growth and stability in the ever-competitive market.