The BCA, which reflects the company's standalone credit quality, is constrained by risks associated with IEC's continuing exposure to coal-fired generation in Israel, which is under pressure from government policy and the increasing availability of low-cost gas, although the regulatory framework is expected to provide strong protection against asset stranding. In addition, while debt is declining, IEC continues to have relatively high gearing. Moody's also expects the company to maintain a strong market position in electricity generation for the foreseeable future, despite the required asset sales, through the planned construction of two new gas-fired stations. IEC, which is 99.85% owned by the Government of Israel, is also the dominant electricity supply company in Israel, although this segment will be opened to competition over time, Moody's concluded.