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S&P affirms Israel's credit ratings amid heightened security risks, economic uncertainty

  • Standard & Poor’s maintained Israel’s credit rating at A/A-1, while keeping a negative outlook due to ongoing security concerns and political instability expected in 2025.
  • This affirmation follows Fitch's decision in late March to keep Israel's rating at A with a negative outlook after a downgrade last August.
  • S&P and Fitch note that the 19-month-long war, geopolitical risks, and unpredictable domestic politics heighten concerns over Israel's economic stability.
  • S&P warns that expanding conflict or renewed fighting in Gaza could raise defense spending, government debt, and interest costs, possibly harming the economy.
  • Both agencies indicate that avoiding security escalations or achieving a permanent ceasefire could restore Israel's rating to stable and enable future upgrades.
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Globes broke the news in on Friday, May 9, 2025.
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