The international rating agency S&P announced a reduction in Israel’s sovereign credit rating in foreign currency from AA- to A+. At the same time, the agency’s forecast remains negative, which means the possibility of an additional rating downgrade in the short term.
Israel’s rating according to the agency was higher than that of other agencies, and its decrease was expected. Let us recall that Moody’s earlier downgraded Israel’s rating, while Fitch limited itself to changing its outlook to negative.
The main reason for the rating downgrade in S&P is a sharp deterioration in the geopolitical situation and an increase in the state budget deficit (the agency expects a deficit of 8%, and not the 6.6% budgeted for).
According to the agency’s forecast, the ratio of Israel’s public debt to its GDP will be 66% in 2026.