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 war on Gaza 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 following Israel’s April 1 attack on an Iranian consulate in Syria….more
