Phoenix Financial Achieves BBB International Credit Rating from S&P Global Ratings

Phoenix Financial, a premier asset management and financial services firm based in Israel, has recently been awarded a long-term issuer credit rating of 'BBB' with a stable outlook by S&P Global Ratings. This development is significant for the company, which is traded on the Tel Aviv Stock Exchange under the ticker symbol PHOE.

The assigned credit rating showcases Phoenix Financial's solid financial profile characterized by high liquidity, low financial leverage, and a history of consistent dividend distributions. The company's subsidiaries, particularly in asset management and insurance, significantly contribute to a stable cash flow that sustains upstream dividends and enhances overall financial flexibility.

In its announcement, S&P pointed out that the rating position of Phoenix Financial is only two notches below that of its operating subsidiary, Phoenix Insurance. This is noteworthy, given that such a differential is typically three notches for most shareholder entities. This closer ranking illustrates the quality and stability of earnings generated through diversified asset management activities within the organization, indicating a strategic alignment of interests that significantly bolster Phoenix's market standing.

The stable outlook of the rating indicates that S&P expects Phoenix Financial to continue to maintain its competitive edge in the Israeli financial services market. This expectation is underpinned by strong earnings resilience alongside a concerted effort to enhance capital adequacy over the long term.

Eyal Ben Simon, the CEO of Phoenix Financial, expressed his pleasure with receiving this international credit rating, stating, “This milestone reflects the strength and resilience of our business model, the quality of our earnings, and our disciplined approach to capital management. Importantly, this rating enhances our financial flexibility and supports our ability to invest in growth initiatives and execute on strategic M&A opportunities.” His comments underline the company's commitment to expanding its platform and creating lasting value for stakeholders.

Phoenix Financial boasts over $200 billion in assets under management, positioning itself as a notable player within the financial services landscape. The company is involved in various multi-faceted activities, which include fund management, wealth solutions, retirement planning, advisory services, and credit origination. Its operational breadth provides a buffer against market volatility and enhances its capacity to innovate and evolve in a dynamic financial environment.

Furthermore, Phoenix Financial is featured within leading equity indices such as the Tel Aviv 35, MSCI World, MSCI Israel, FTSE Developed, and Bloomberg Developed Markets, validating its significant influence in the global financial arena. As the company moves forward, it aims to leverage its substantial assets and robust financial frameworks to capitalize on emerging opportunities in the market, reaffirming its status as a trusted leader in the financial services sector.

In summary, the assignment of a 'BBB' international credit rating from S&P Global Ratings serves as a testament to Phoenix Financial's ongoing commitment to achieving excellence in financial stability and performance. The company is poised to navigate future challenges while fostering growth, innovation, and long-term value for its clients and stakeholders alike.