Standard & Poor's has downgraded Israel's long-term credit rating from A+ to A, citing increased security risks in light of the latest escalation in the conflict with Hezbollah in Lebanon.
The agency highlighted concerns about potential security threats, including retaliatory rocket attacks against Israel, which could exacerbate the impact of tensions on the economy.
Moody's downgraded Israel's credit rating by two notches to Baa1 last week and warned of a downgrade to junk if the current escalating tensions with Hezbollah turn into a full-scale conflict.
S&P said: “We now believe that military activity in Gaza and escalating fighting across Israel’s northern border, including a ground incursion into Lebanon, could continue through 2025, with risks of retaliation from Israel.”
The agency maintained its negative outlook for Israel.
