Mizrahi Tefahot Bank Ltd., (“Mizrahi Tefahot”) is incorporated and existing under the laws of the State of Israel and was established as a public company limited by shares on June 6, 1923. In 1963, Mizrahi Tefahot's shares were first listed for trading on the Tel-Aviv Stock Exchange.
Mizrahi Tefahot is Israel's third largest bank based on value of assets and offers a complete range of international, commercial, domestic and personal banking services. Its total assets as of June 30, 2021 amounted to USD 114.84 billion, and for the six months ended June 30, 2021, Mizrahi Tefahot reported USD 803.98 million of operating profit before taxes, USD 510.43 million of net profit, and a return on equity of 17.7%.
Mizrahi Tefahot's controlling shareholders, the Ofer and Wertheim groups, currently hold about 41.86% of its shares, with the remaining outstanding shares owned by the public who hold shares on the Tel-Aviv Stock Exchange. Mizrahi Tefahot Group operates through 232 branches and business centres in Israel (including 53 branches of its subsidiary, Bank Yahav for Government Employees Ltd, and 35 branches of its subsidiary, Union Bank of Israel Ltd), and its affiliates in Israel and abroad, with two branches in London and Los Angeles respectively.
On July 22, 2021, S&P GLOBAL RATINGS MAALOT LTD (hereinafter: "Ma'alot") confirmed the Bank's issuer rating of ilAAA with a Stable rating outlook. The Bank's subordinated capital notes (Upper Tier II capital) and the contingent subordinated notes with contractual loss-absorption provisions (CoCo), which qualify as Tier II equity in conformity with provisions of Basel III, are rated ilAA- by Maalot.
On May 13, 2021, Midroog Ltd. (created in partnership with Moody's International, which owns a 51% equity stake) (hereinafter: "Midroog") left the Bank's ratings un-changed. Long-term deposits and senior debt of the Bank are rated Aaa.il / Stable outlook. Furthermore, Midroog set a rating of Aa1.il / Stable outlook for Mizrahi Tefahot Issuance, for transfer of subordinated notes (lower secondary capital) issued by Igud Issuance to Mizrahi Tefahot Issuance, in conjunction with completion of the merger between the two issuance companies. The subordinated capital notes (Upper Tier II capital) are rated Aa2.il / Stable outlook. Contingent subordinated notes with contractual loss-absorption provisions (CoCo), which qualify as Tier II equity in conformity with provisions of Basel III, are rated Aa3.il / Stable outlook.
On September 30, 2020, Moody's Investors Services rating agency confirmed the Bank's long-term deposit rating at A2 with Stable outlook.
On March 18, 2021, rating agencies Fitch Ratings (hereinafter: "Fitch") and S&P Global Ratings (hereinafter: "S&P") initiated rating of the Bank. Fitch confirmed its initial long-term IDR rating for the Bank of A / Stable outlook, and its short-term rating at F1+. On that date, S&P confirmed its initial long-term issuer credit rating for the Bank at A- / Stable outlook, and its short-term issuer credit rating for the Bank at A-2. On April 21, 2021, S&P left the Bank ratings unchanged and raised the rating outlook to Positive. On March 18, 2021, S&P rated BBB- a series of contingent subordinated notes with loss-absorption provisions which qualify as Tier II equity, issued by the Bank on April 7, 2021 by international private placement to institutional investors, and Fitch rated this notes series BBB(exp). On April 7, 2021, Fitch rated the aforementioned notes BBB.