Cyber attack on Israel (unsplash photo, freepik, pixabay)
The credit rating company Madrog estimates that the risk to the credit received by Goldbond increased due to the cyber attack on its computer systems, which caused them to shut down for 10 days.
“A cyber attack on the company’s computer and information systems (rated A2.il on a negative horizon) led to a partial shutdown of the company’s operations for ten days. The consequences of this incident are still being examined by the company with regard to business and financial parameters.
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“Since the company has not yet finished assessing the damage caused to it following the cyber incident, there is a difficulty at this stage in assessing the effects on the business and financial profile. Midroog sees the incident as having a negative impact on the issuer’s credit risk due to financial, legal and reputational costs “Midroog will continue to monitor and examine the extent of the incident’s impact on the company’s rating,” Midroog said in a statement to Goldbond’s creditors.
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At the end of last January, the company reported that it had identified a foreign, unauthorized person, had infiltrated the company’s computer and information systems and acted to disrupt the operation of its systems and / or extract information from these systems. The company stated that it was not required to pay a ransom. The company, accompanied by the National Cyber Authority, contacted an external consulting firm that monitored the incident and examined the implications of the move. On February 10, 2002, the company reported that it had returned to a full work routine and that most of the computer systems had gone into operation. As reported, the company is working to draw lessons from the incident and reduce future risks.
“During the period of the said cyber incident, the company did not operate in full operation when the said computer systems were temporarily disabled. Midroog held talks with the company, which is still examining the impact of the said cyber incident on its financial and operational results. In partial efficiency over a number of days and expenses in respect of the consulting firm, however the extent of these is not known at this stage.
“The lack of complete information about the damage of the attack, beyond the direct costs, creates a great deal of uncertainty around the assessment of the effects on the business and financial profile.”
Gold Bond has revenues of approximately NIS 165 million in the four quarters ended on 30.09.2021 and operating profit before depreciation and other amortization (EBITDA) of approximately NIS 39 million in the four quarters ended on 30.09.2021 (compared to NIS 32 million in 2020).
The rating also shows that Gold Bond maintains a significant capital adequacy ratio in relation to the rating, and consistently over the years, thanks to a strong capital cushion estimated at NIS 586 million as of September 30, 2121 and an equity-to-balance sheet ratio of about 73% as of 30.09.2021. The company also has additional quality assets in the form of maintenance at “Israel Shipyards” (20%).
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