Another blow to the Israeli economy… Standard & Poor’s lowers Israel’s credit rating
Standard & Poor’s has downgraded Israel’s long-term credit rating from A+ to A, days after Moody’s downgraded Israel’s credit rating, in another severe blow to the Israeli economy.
Standard & Poor’s, one of the world’s largest credit rating agencies, has changed its outlook for Israel’s economy to “negative”.
The decision, issued on Tuesday night, was attributed to the increasing security risks in light of the escalation of events in the conflict with Hezbollah, in addition to the risk of a more direct war with Iran.
Standard & Poor’s said that the increasing possibility that the conflict between Israel and Hezbollah will last longer and become stronger poses security risks to Israel.
Standard & Poor’s downgrading Israel’s credit rating came immediately, and earlier than expected.
Standard & Poor’s expects zero growth for the Israeli economy this year, due to the escalation of the conflict with Hezbollah, and a deficit of 9%.
On Friday, Moody’s downgraded Israel’s credit rating to Baa1 from A2, and maintained its negative outlook on the rating.
