B Communications Announces: Midroog Ltd. Raised the Local Rating for B Communications' Series B Debentures to A1 With a Stable

  B Communications Announces: Midroog Ltd. Raised the Local Rating for B
  Communications' Series B Debentures to A1 With a Stable Outlook

Business Wire

RAMAT GAN, Israel -- March 20, 2014

B Communications Ltd. (NASDAQ Global Market: BCOM)(TASE: BCOM) today
announced, that Midroog Ltd., an Israeli rating company affiliated with
Moody’s (“Midroog”), raised the local rating of the Series B Debentures of B
Communications Ltd. ("the Company”) from an A2 to A1 rating with a stable
outlook.

In its rating report, Midroog noted that the A1 stable rating is supported
both by the Company’s successful private offering of $800 million of Senior
Secured Notes due 2021 that improved its financial flexibility and removed
covenants following the payment of senior debts, and by the strong financial
profile of Bezeq The Israel Telecommunications Corp. Limited (“Bezeq”). Bezeq
is expected to continue to produce steady cash flows to support the Company’s
debt obligations for the short and medium terms. Midroog also noted the
positive decrease in the Company’s leverage ratio during the past years and
its high liquidity balance. Midroog referred to the Company’s high leverage
level and partial dependence upon Bezeq's dividend distributions as factors
that could undermine and negatively affect the rating.

The above description of Midroog’s report is only a summary of the main points
and it should not be relied upon as a complete description of the full report.
The full report can be viewed at
http://maya.tase.co.il/bursa/report.asp?report_cd=886063.

Commenting on the news, Mr. Doron Turgeman, the Company’s CEO stated, “After
four years in which we were able to meet our business objectives and
continuously decrease B Communications’ net financial debt from more than NIS
5 billion to approximately NIS 3 billion as of today, we are now advancing to
the next phase. Our new debt structure has significantly improved our
financial condition, providing us with a more convenient loan repayment
schedule and should improve our future free cash flow. These factors are
reflected in Midroog’s rating report which speaks for itself. In the quarters
ahead, we will continue our efforts to strengthen our financial stability and
liquidity in order to improve our debt and equity positions.”

About B Communications Ltd.
B Communications is a telecommunications-oriented holding company and its
primary holding is its controlling interest in Bezeq, The Israel
Telecommunication Corp., Israel’s largest telecommunications provider (TASE:
BEZQ). B Communications shares are traded on NASDAQ and the TASE under the
symbol BCOM For more information please visit the following Internet sites:

www.bcommunications.co.il
www.ir.bezeq.co.il
www.eurocom.co.il
www.igld.com

Contact:

For B Communications
Idit Cohen, IR Manager
+972-3-924-0000
idit@igld.com
or
Investor relations contacts:
Hadas Friedman, Investor Relations
+972-3-516-7620
Hadas@km-ir.co.il
 
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