Jerusalem, 8 September 1996

ISRAEL’S FOREIGN CREDIT RATING MAINTAINED

(Communicated by Finance Ministry Spokesman)

The international credit rating companies, Standard and Poor’s and Moody’s, both maintained their credit ratings for Israel, the Accountant General in the Finance Ministry announced. Standard & Poor’s rating was A-, while the rating from Moody’s was A3. This decision by two of the world’s largest rating firms, points to their continued belief in, and their assessment of, Israel’s economy.

The announcement by the two international ratings firms was made in advance of the efforts of the Government of Israel to raise capital on the Eurobonds market. The final agreement enabling Israel to raise some $750 million in Eurobonds will be signed with seven leading European underwriting firms this Tuesday, 10.09.96, in Jerusalem. Merrill Lynch International will be the primary underwriter.

It should be noted that the publication of these ratings refute the recent unsubstantiated reports on expectations that Israel’s credit rating would be lowered.

It should also be noted that the A3 Moody’s rating and the A- S&P rating are similar ratings, and that the two firms again maintain the ratings previously given to the Israeli economy.