Current:Home > reviewsIsrael’s long-term credit rating is downgraded by S&P, 2nd major US agency to do so, citing conflict -Wealth Evolution Experts
Israel’s long-term credit rating is downgraded by S&P, 2nd major US agency to do so, citing conflict
View
Date:2025-04-12 12:55:44
Israel’s long-term credit rating is being downgraded by S&P, which cited the risk of military escalation with Iran. It is the second major U.S. credit ratings agency to do so.
There was an apparent drone attack at a major air base and a nuclear site near the central city of Isfahan early Friday, which is suspected of being part of an Israeli retaliation for Tehran’s unprecedented drone-and-missile assault on the country days ago.
S&P’s downgrade was issued shortly before the strike in Iran, and almost three months after Moody’s, another major U.S. credit agency, downgraded Israel’s rating due to the “ongoing military conflict with Hamas.”
S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on Israel to ‘A+’ from ‘AA-’ and the short-term ratings to ‘A-1’ from ‘A-1+.’
The long-term downgrade means Israel’s credit rating has moved from a “very strong capacity to meet financial commitments,” to “a strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances,” according to S&P.
“In our view, the recent increase in confrontation with Iran heightens already elevated geopolitical risks for Israel,” the credit ratings agency said. “We expect a wider regional conflict will be avoided, but the Israel-Hamas war and the confrontation with Hezbollah appear set to continue throughout 2024--versus our previous assumption of military activity not lasting more than six months.”
S&P’s outlook on Israel’s long-term ratings is negative.
The cost of the war is a major drain on Israel’s budget and all three U.S. credit ratings agencies, Moody’s, S&P, and Fitch, which also has offices in London, have issued warnings on Israel’s credit standing since the surprise attack on the country by the ruling Hamas militant group.
S&P typically issues sovereign credit ratings on scheduled dates, but does break with that practice if events merit. S&P’s will issue another ratings review for the country on the date it was originally scheduled to do so, on May 10.
No Iranian official directly acknowledged the possibility that Israel attacked, and the Israeli military did not respond to a request for comment. However, tensions have been high since the Saturday assault on Israel amid its war on Hamas in the Gaza Strip and its own strikes targeting Iran in Syria.
veryGood! (77)
Related
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- Report uncovering biased policing in Phoenix prompts gathering in support of the victims
- Indian doctor says he found part of a human finger in his ice cream cone
- Algae blooms prompt 2 warnings along parts of New Hampshire’s Lake Winnipesaukee
- What do we know about the mysterious drones reported flying over New Jersey?
- Watch Georgia man's narrow escape before train crashes into his truck
- Inmate who escaped from Houston courthouse after holding staffer at knifepoint caught following hours-long manhunt
- How Isabella Strahan Celebrated the End of Chemotherapy With Her Friends and Family
- What to watch: O Jolie night
- Bear attack in Canadian national park leaves 2 hikers injured
Ranking
- B.A. Parker is learning the banjo
- Kate Middleton Details Chemotherapy Side Effects Amid Cancer Treatment
- Wells Fargo fires workers after allegedly catching them simulating keyboard activity
- Judge temporarily blocks expanded Title IX LGBTQ student protections in 4 states
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- Microsoft delays controversial AI Recall feature on new Windows computers
- Struggling telehealth company exploited Adderall sales for profit, prosecutors say
- Hurry! Gap Is Offering 50% off Your Entire Purchase, Including Sale Items Like Basics for Summer & More
Recommendation
DeepSeek: Did a little known Chinese startup cause a 'Sputnik moment' for AI?
R.E.M. reunite at Songwriters Hall of Fame ceremony also honoring Timbaland and Steely Dan
How Isabella Strahan Celebrated the End of Chemotherapy With Her Friends and Family
Southwest Airlines Boeing 737 Max goes into Dutch roll during Phoenix-to-Oakland flight
DoorDash steps up driver ID checks after traffic safety complaints
Struggling telehealth company exploited Adderall sales for profit, prosecutors say
Horoscopes Today, June 13, 2024
Telehealth CEO charged in alleged $100 million scheme to provide easy access to Adderall, other stimulants