As Israel engages in combat with Hamas in Gaza in response to the militant group’s catastrophic onslaught, Standard & Poor’s announces it is revising its view on Israel’s credit rating from “stable” to “negative”.
Regarding Israel’s long-term foreign and local currency ratings, S&P announced on Tuesday that it was modifying the outlooks due to the ongoing conflict, its potential to spread into a larger regional conflict, and the possible effects on the economy.
S&P maintained Israel’s credit rating at AA. AAA is the agency’s top rating. S&P is raising a red flag by changing the outlook, indicating that a rating drop may occur in the future.
Both Fitch and Moody’s credit rating agencies have made related moves.