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Partner Communications Announces That S&P Maalot Has Reaffirmed the Company's ila+ Credit Rating and Updated the Company's Rating Outlook to Negative


Partner Communications Company Ltd. ("Partner" or the "Company") (NASDAQ and TASE: PTNR), a leading Israeli communications operator reports today that Standard & Poor's Global Ratings Maalot Ltd. ("Maalot"), has published a rating report regarding the Company. In its report, Maalot reaffirmed the Company's 'ilA+' credit rating and updated the Company's rating outlook from "stable" to "negative". In addition, Maalot reaffirmed the 'ilA+' rating of the Company's series of debentures.

In accordance with the Maalot report, the negative outlook reflects Maalot's assessment that the intense competition in the entire telecommunications market will continue in 2019-2020, and an additional erosion will occur in the Company's operating performance that will lead to adjusted profitability (EBITDA margin), below 20%. In addition, the Company's extensive investments in the fiber optics project might, in their assessment, lead to low to negative free cash flow in the next 12 months and erode the Company's cash reserves. However Maalot noted that most investments are in growth engines, such as the fiber optics project and in increasing the TV service's penetration, and they can be decreased or spread out if necessary. Maalot believes that the acceleration of these investments is material in preserving Partner's position as one of the three leading telecommunication companies in Israel and is expected to support its business profile in the long term. Furthermore, Maalot expects the Company's leverage to increase in 2019-2020 but will remain low compared with its competitors.

For further information see S&P Maalot's full Report dated August 5, 2019 on: or its informal English translation attached to the immediate report on Form 6-k to be furnished to the Securities and Exchange Commission.

About Partner Communications

Partner Communications Company Ltd. is a leading Israeli provider of telecommunications services (cellular, fixed-line telephony, internet and television services). Partner's ADSs are quoted on the NASDAQ Global Select Market™ and its shares are traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR).

For more information about Partner see:

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