Research Update: Mizrahi Tefahot Bank Outlook Revised To Positive On Resilient Risk Profile And Capital Buffers; Affirmed At 'A-/A-2'

Mizrahi Tefahot Bank Ltd. (Mizrahi) has maintained sound asset quality and strong capital buffers in the past few years while demonstrating resilience to the economic impact of the COVID-19 pandemic. The recently completed merger and ongoing integration of Union Bank will likely further strengthen Mizrahi's creditworthiness, alongside the successful implementation of the bank's new five-year strategy. We therefore revised our outlook on Mizrahi to positive from stable and affirmed our 'A-/A-2' ratings on the bank. The positive outlook indicates that we could raise our ratings over the next two years if the bank successfully delivers on its commitments under the new strategic plan and improves its product diversification, profitability, and efficiency while maintaining solid credit quality and capital ratios. On

...- Mizrahi Tefahot Bank Ltd. (Mizrahi) has maintained sound asset quality and strong capital buffers in the past few years while demonstrating resilience to the economic impact of the COVID-19 pandemic. - The recently completed merger and ongoing integration of Union Bank will likely further strengthen Mizrahi's creditworthiness, alongside the successful implementation of the bank's new five-year strategy. - We therefore revised our outlook on Mizrahi to positive from stable and affirmed our 'A-/A-2' ratings on the bank. - The positive outlook indicates that we could raise our ratings over the next two years if the bank successfully delivers on its commitments under the new strategic plan and improves its product diversification, profitability, and efficiency while maintaining solid credit quality and capital ratios....

Research Update