Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

World News

S&P cuts Israel’s credit rating on heightened geopolitical risk

Ratings agency S&P Global on Thursday cut Israel’s long-term ratings to A-plus from AA-minus after the confrontation with Iran heightened last weekend and amidst the already elevated geopolitical risks for Israel.

“We forecast that Israel’s general government deficit will widen to 8% of GDP in 2024, mostly as a result of increased defense spending,” S&P Global said in its statement.

The negative outlook reflects the risk that the Israel-Hamas war and the confrontation with Hezbollah could escalate or affect Israel’s economy more than the agency currently expects.

“We currently see several possible military escalation risks, including a more substantial, direct, and sustained military confrontation with Iran,” the statement said.

On Saturday, Iran’s Islamic Revolutionary Guards Corps said it launched dozens of drones and missiles at Israel, an attack which could trigger a major escalation between the regional archenemies, with the U.S. pledging to back Israel.

Earlier this month, Fitch removed Israel from “rating watch negative” and kept its A-plus rating, but cited Israel’s war against Hamas in Gaza as a risk.

In February, Moody’s downgraded the country’s credit rating on war risks. Israeli Finance Minister Bezalel Smotrich said that decision was not based on sound economic reasoning and was tantamount to a pessimistic “manifesto”. — Reuters

    You May Also Like


    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...


    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...


    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 | All Rights Reserved