Moody’s assigns Ba1 ratings to Israel Credit Cards

Moody’s Investors Service has assigned Ba1 local and foreign currency long-term issuer ratings to Israel Credit Cards Ltd. The outlook for both ratings is ‘stable’.

ICC is the second-largest credit card company in the thriving Israeli market, with a market share of around 27%, and operates mainly under the Visa brand. First International Bank of Israel (rated A2 with positive outlook/C-/P-1) is minority shareholder of ICC with 28%.

According to Moody’s, the ratings reflect the company’s small size, rapid credit expansion and modest financial reporting transparency, mitigated by healthy profitability and very high expected support from the parent Israel Discount Bank (IDB, rated A2 positive outlook/P-1/C-).

Traditionally involved in the profitable and low-risk clearing business, ICC is developing lending activities through its revolving card portfolio. Moody’s adds that the ratings incorporate expectations of a moderate decline of asset quality and profitability following anticipated rapid credit expansion. The rating agency will carefully monitor if capital ratios are at least maintained at current levels.

Based in Givatayim, Israel, ICC reported total assets equivalent to US$1.5 bln at the end of 2006.