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| Abstract: | Mizrahi Tefahot Bank Ltd. (Mizrahi) is the third-largest bank in Israel with a strong franchise, leading position in mortgage lending, and large and granular deposit base. Mizrahi enjoys sound asset quality and strong capital buffers supported by good efficiency, but it remains highly concentrated in the domestic market and its lending portfolio is skewed toward mortgages and real estate lending. The recent merger with Union Bank will likely support the bank's market positioning in Israel and increase the diversification of its lending portfolio, reducing its concentration in mortgages. We are assigning our 'A-' long-term and 'A-2' short-term issuer credit ratings to Mizrahi. The stable outlook reflects our expectation that, over the next 24 months, the bank's capital buffer will be |
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| Brief Excerpt: | ...- Mizrahi Tefahot Bank Ltd. (Mizrahi) is the third-largest bank in Israel with a strong franchise, leading position in mortgage lending, and large and granular deposit base. - Mizrahi enjoys sound asset quality and strong capital buffers supported by good efficiency, but it remains highly concentrated in the domestic market and its lending portfolio is skewed toward mortgages and real estate lending. - The recent merger with Union Bank will likely support the bank's market positioning in Israel and increase the diversification of its lending portfolio, reducing its concentration in mortgages. - We are assigning our 'A-' long-term and 'A-2' short-term issuer credit ratings to Mizrahi. - The stable outlook reflects our expectation that, over the next 24 months, the bank's capital buffer will be sufficient to absorb the COVID-19 pandemic's effects on its asset quality and financial performance.... |
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| Report Type: | |
| Ticker | MZRH@IT |
| Issuer | |
| GICS | Diversified Banks (40101010) |
| Sector | Global Issuers, Structured Finance |
| Country | |
| Region | Europe, Middle East, Africa |
| Format: | | PDF |  |
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