Israel : Maalot's Report ilA Bonds Issuance

lsrael Corporation Ltd.

Registrar N umber: 5200280 I O Form 125

Public

To:

The Securities Author ity www.isa.gov.il

To:

The Tel Aviv Stock Exchange

www.tase.co.il

Date of Transmission: 04/01/2017 Reference: 20 17-01-002007

Immed ia te Report regarding rat in g of debe n tures/rat ing of corporation or cease of rating

On 04/01/20 17, Maalot S&P publ ished an updated rating report. Rating of the Company's Debentures:

13.irting_ &gea y	eura,en't Rating	Notes
			Na)l1e·and PSi>f ,Se'Ciu'riti	Seturlties N'o. in Stlr&l( E:(ch$JJge
Debent.ure (Se.Ne,7)	S760160	Maa/ot S&P	Maalot S&P ilA!Stable	Rating Confirmation
Debenture (Series 9)	5760202	Maalot S&P	Maalot S&P i!A!Stab/e	Rating Confirmation
Debenture (Series I OJ	5760236	Maa/oz S&P	Maa/ot S& P i/A!Stc,ble	Rating Co11firmation
Debenture (Series I /)	5760244	Matilot S& P	Maalot S& P ilA($lab/e	Rating Confirmation

Rating history of the last 3 years prior to the current published rating:

Name a.nd type of Se:(}_u".f ities	S'tfcm:rifis No. in"Stock Exchangt!	Ra1inJOate	'F)iije,of Sec_udties		Rating	RQt1s::
Debenture (Series 3)	5760101	2 1/ 09/2014	Debenture	Maa/01 S&P i/A+/Stable	Rating Confirmalibn
Debenture (Series 4)	5760111	27109/20/ 4	Deb_enture	Maa/ot S& P ilA+/Stable	Rating Confim1t,tion
Debemure (Series 5)	5769'129	2 J /0912014	Debenture		Maalot S& P i!A+!Stable	Rating Confirntafion
Debenture (Series 6)	5760152	2 J / 0912014	Debenture		Maalot S& P i/A+/Stab/e	Rnlilig Confirmation
Debenture (.7)	5760160	27109/20 / 4	Debenture		M(uilot S&P ilA+lStable	Rating Co,?ft rmation

This is an English convenience translat ion of the original Hebrew version. I.n case of any discrepancy, the binding version i s the Hebrew original

Debemure (Series 8)	5769178	21/ 09/2014	Debenture	Mtta/01 S&P i/A+/Stable	Rating Co.nfir111ation
Debenture (Series 9)	5760202	2 l/09/2014	Debenture	Maalot S&P	Rating Cdn.firmation
i/A+/Stable
Debenture (Series 6)	5760152	27/08/2015	Debentw:e	Maa/ot S&P i/A +/Stable	Rating Co>?firmation
Debenture (Series 7)	5760160	27/08/2015	Debe11111re	Maalot S&P i/A+/Staqle	Rating Con/b-mation
Debenture (Series 9)	5760202	27108i2015	Debenture	Maalot S&P	Rating Confirmation
i/A+!Stable
Debenture (Series 6)	5760152	23!! !/2015	Debe1.1ture	Maa/ot S&P	Rating Confirmation
i/A+!Stable
Debenture (Series 7)	5760160	23/ 1112015	Debenture	Maalot S&P	Rating Confirmation
ilA+/Stable
Defrenture (Series 9)	5760202	23/ 11/2015	Debenture	Maalot S& P	Rating Confirmation
ilA+IStable
Debenture (Series 6)	5.760152	30/ f/ /2015	Debenture	Maalot S&P i!A+!Srab}e	Rating Confirmation
Debenture (Series 7)	5760160	30/ 11/2015	Di!benture	Maalot S&P ilA+ISLable	.Rating Con.firmation
Debenture (Series 9)	5760202	30/J 1/2015	Debenture	Maalot S&P	Rating .Conflrmatio11
ilA+/Stable
Debenture (Series 6)	5760152	26/0 1/2016	Debenture	Mcmlot S&P i/A+/Negative	Rating Confirmation
Debenture (Series 7)	5760160	26/ 01/ 2016	Debenlllre	Maalot S&P	Rating ConfirmaLion
ilA +/Neg ative
Debenture (Series 9)	5760202	2610!!20 !6	Debenture	Maalot S&P i/A +/Negative	Rating Confirmation
Debenture (Series 7)	5760160	05/05/20 / 6	Debenture	Maalot S&P	Ra1ing Confirmation
i/A +!Negative
Debentur e (Series 9)	5760202	05/0512016	Debenture	Mt,a/ot S&P i!A+/Negative	Rating Co,ifirmation

Debentwe (Series 10) 5760236 05/05/ 2016 Debenture Mac,lot S&P RatingCo>?{irmation

i/A +/Negativ e

Deb,emute (Series I 1)	5760244	05/0 5/ 20 / 6	Debenture	Maalot S&P i/A +/Negative	Rirtlng Co,ifirmalion
Debenture (.':>erirts 7)	5760160	25/ 05/ 2'016	Debenture	Maaloi S&P i/A+!Negative	Rating Confirmation

Deben111re (Series 9) 5760202 25/05/2016 Debenture Maalot S&P RatingConf,rn,ation

i/A+/Negative

Debenture (Series l0)	5760236	25/0512016	Debenll/re	Maolot S&P i/A+!Negative		R(lting Co1?fir111ati o11
Debenture (Series I 1)	5760244	25105/20/6	Deben!U re	Maa/ot S& P i/A+/Negative		Rming Cor{/irmation
Debentw ,e (Series 7)	5760160	22/11120 / 6	Dr,!bemur e	Maalot S&P iiA/Stable		Rating Downgrade
Debenture (Serles 9)	5760202	22/1 1120 / 6	Debenture	Maalot S&P iiA/Stable		Rating Downgrade
Debenture (Serie-s I 0)	5760236	2..211 / /20 / 6	Debenture	Maalot S&P ifA/Stable	Rating Downgrade
Debenture (.Series I I)	5760244	22/ / / /20 / 6	Debentur e	Maalot S&P ifA/Stable	Rating Downgrade
Debenture (Series. 7)	5760160	Ol/ 01/ 2017	Debenture	,Waalot S&P iiA/Stable		Rating Confirmation
Debenture (Series 9)	5760202	01/ 0/ /207 7	Debenture	Maalot S& P i/A!Stable		Rating ConfirmatiOJ7
Debemure (Series I 0)	5760236	OII0/12017	Debenture	Maa/ot S&P iiA/Stable		Rating CC>nfirmation
Debenrure (Series I I)	5760244	01/0/ /2017	Debenture	Maalot S&P iiA/Stable		Rating Confirmation

Attached is Maalof S&P Rating Report Janumy 4.

Nam e of report authorized signatory and name of authorized electron ic signatory: Maya Alcheh Kaplan Position: Vice President, General Coun sel and Company!s Secretary.

Signature date: 04/01/201 7

Form structu re updated: 29/ 12/2016 Securities of the corporation are l isted in the Tel Av iv Stock Excha11ge

Short name: Israel Corporation

Address: P.O.B. 20456, Tel Aviv 61204 Tel: [phone]., Fax: [phone] Ema i l: [e-mail]

Name of Electronic Repo1ter: Maya Alcheh Kaplan. Position: Vice President, General Cou nsel and Company's Secretary. Address: Anfnha 23, Millennium Tower, Tel Avjv 6 1204 Phone -03-684451 7 Fax: [phone] e-mail: mayaak@israelco rp.com

Israel Corporation Ltd.

.................................................................................................................................................

January 4, 2017 New Issue 'ilA' Rating Assigned To Bond Issuance Of Up To NIS 1 Billion Par Value Primary Credit Analyst

Matan Benjamin, 972-3-7539731 [e-mail]

Secondary Credit Analyst

Tom Dar, 972-3-7539722 [e-mail]

Please note that this translation was made for the company's use only and under no circumstances obligates Standard & Poor's Maalot. In the case of any discrepancy with the official Hebrew version published on January 4, 2017, the Hebrew version shall apply.

1 | January 4, 2017 New Issue