S&P Reaffirms ICL'S BBB- Rating With a Stable Outlook

TEL AVIV, Israel, May 10, 2018  /PRNewswire/ -- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals and specialty chemicals company, announced that S&P Global ("S&P") has reaffirmed the Company's rating at BBB- with a Stable Outlook. 

In its report S&P stated that ICL's net debt to EBITDA is likely to be 3.0-3.5x in 2018-2019, commensurate with the Company's current rating, aided by the Company's $1 billion divestment of its fire safety and oil additives businesses, proceeds of which contributed to a decrease of approximately $800 million in ICL's net debt. S&P also stated that ICL will generate positive free operating cash flow in 2018-2019.

In affirming its rating, S&P emphasized the resilience of ICL's EBITDA driven by the Company's competitive advantages and its continued shift to production of value-added specialty products which enable the Company to maintain stable profitability despite lower margins in the fertilizer segment. In addition, S&P cited ICL's cost reduction and efficiency measures at its global production sites which, despite resulting in higher CAPEX expenditures in the near term, will allow ICL to reduce production costs and improve its competitive position. Overall, S&P expects ICL will generate EBITDA of about $950 million to $1 billion in 2018. In addition, the rating agency considers an adjusted net debt to EBITDA ratio of 3.0x at the top of the business cycle and 4.0x at the bottom of the cycle to be commensurate with the current rating.

The Company believes that S&P's affirmation of its rating demonstrates the rating agency's confidence in ICL's responsible capital allocation approach. Cash flow generation will continue to be supported by ICL's two pillar strategy to strengthen its core mineral chains through optimization of its mineral assets, growing its downstream businesses through innovation and a value oriented pricing approach as well as growing its Advanced Crop Nutrition business in order to achieve both top and bottom line growth.

Please see the full S&P report below or in the following link:

http://www.icl-group.com/investors/reports/immediate-reports/immediate-reports-2018/

About ICL

ICL is a leading specialty minerals and specialty chemicals Company that operates three minerals chains in a unique integrated business model, serving two key markets: agriculture and industrial. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs approximately 12,600 people worldwide, and its sales in 2017 totaled US$5.4 billion. For more information, visit the Company's website at www.icl-group.com.

PRESS CONTACT
Maya Avishai
Head of Global External Communications
+972-3-684-4477
Maya.Avishai@icl-group.com

INVESTOR RELATIONS CONTACT
Limor Gruber
Investor Relations Manager
+972-3-684-4471
Limor.Gruber@icl-group.com

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SOURCE ICL