S&P: Bezeq on watch

Standard & Poor's said it placed its A- long-term foreign currency corporate credit rating on Bezeq - Israel Telecommunication Corp. Ltd. on CreditWatch negative. The A-2 short-term corporate credit rating was also placed on CreditWatch negative.

The CreditWatch placement follows the announcement that Ap-Sab-Ar Holdings Ltd. has been selected as the preferred bidder for a 30% stake in the company, which is currently held by the Israeli state.

As a result of the consequent expected change of ownership, S&P said it considers a fundamental change in Bezeq's financial policy and capital structure to be likely.

S&P said the ratings on Bezeq are supported by the company's strong market position as Israel's leading telecommunications operator, good competitive standing and operating performance, good service area economics and strong financials.

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