Fitch Downgrades “Israel’s” Credit Rating

By Staff, Agencies

The international credit rating company Fitch Ratings announced early Tuesday that it was lowering the credit rating of the “Israeli” entity from an A+ level to an A level.

Regional tensions, the continuation of the war, a high level of uncertainty, and expected increases in security expenses are cited as reasons behind the new rating.

In addition, Fitch noted the political instability in “Israel”, which has escalated since October 7 and recently intensified around the issue of ultra-Orthodox conscription.    

Fitch estimates that “Israel” will end the year with a deficit of 7.8 percent - compared to the Finance Ministry's forecast of 6.6 percent. As of last week, the deficit stands at 8.1 percent. Fitch is the third rating company to downgrade “Israel’s” credit rating since the beginning of the war. In April, S&P downgraded “Israel's” credit rating, and in February, Moody's downgraded the credit rating as well.

“‘Israel’ is in the midst of the longest and most expensive existential war in its history, a war that is being waged on several fronts simultaneously and has already lasted almost a year,” Finance Minister Bezalel Smotrich said in response.