Tel-a-Viv. Israel. 15 July 2024. Rafael Advanced Defense Systems Ltd. is pleased to announce that it has been upgraded to an ‘A’ credit rating by S&P Global Ratings, with a stable outlook. This significant achievement underscores Rafael’s robust operating performance, resilient profitability, and strong competitive position within the aerospace and defense industry.

Key Highlights:

  • Enhanced Competitive Position: S&P Global Ratings has reassessed Rafael’s business risk profile from ‘fair’ to ‘satisfactory,’ reflecting our strengthened market position and the increasing demand for our cutting-edge defense solutions.

“Our view of Rafael’s competitive advantage and improved profitability underpins our reassessment of its business risk profile. Rafael’s improving competitive advantage and high demand for many of its products and services mean it is well placed to capture customer demand, both from the Israeli Ministry of Defense and from overseas governments and militaries.”

–  S&P Global Ratings Report

  • Strong Financial Health: Our financial risk profile has been upgraded from ‘modest’ to ‘minimal,’ underpinned by a solid net cash position. Rafael’s cash balances are projected to exceed $4 billion through 2024, further cementing our financial stability.
  • Growing Order Backlog: Rafael boasts an impressive order backlog exceeding ILS 50 billion (approximately USD 13 billion), representing about three years of revenue. This surge is driven by heightened defense budgets and robust demand for our advanced defense systems.
  • Positive Outlook: The stable outlook from S&P Global Ratings is based on the expectation of continued strong demand for Rafael’s products and services, bolstered by rising government defense budgets. This trend is anticipated to support our order backlog and financial performance over the next two years.

Dr. Yuval Steinitz, Chairman of Rafael: “We are honored to receive the credit rating upgrade by the world-leading rating agency S&P especially during such a challenging time for the country and society as a whole. Here, again, we see that also economically Rafael can achieve the impossible. In the heat of the tireless efforts invested by the company during the “Swords of Iron” war and despite the extensive reserve enlistment from its ranks, Rafael continues to grow consistently with improvements of tens and hundreds of percent compared to previous years in most parameters. Rafael’s employees and senior directors work with determination, around the clock, especially during this wartime, to realize the company’s vision and be a significant pillar in the security of the State of Israel. I am pleased that these accomplishments are reflected in S&P’s upgraded rating, showcasing trust in Rafael’s strength and financial stability.”

Rafael CEO Yoav Tourgeman: “Rafael maintains its growth trajectory, demonstrating excellent financial results and stability. The S&P rating, the highest ever awarded to an Israeli company, is a testament to this. The year 2023 was a record year for Rafael, marked by technological breakthroughs and robust business activity, a trend we continue into 2024. Since the onset of the war, Rafael’s systems have been saving lives daily and making a decisive contribution to the ‘Swords of Iron’ efforts. This success is due to the unwavering dedication of Rafael’s employees and our commitment to staying at the forefront of technology, turning the impossible into possible. In 2023, Rafael seized important opportunities globally, securing significant deals like the historic sale of the David’s Sling to Finland and other major contracts.”