Standard & Poor's (S&P) Financial Ratings Services affirmed its 'A+/A-1' long- and short-term credit ratings for Israel, with a stable outlook.
S&P is considered one of the Big Three credit-rating agencies, which also include Moody’s Investor Service and Fitch Ratings. Moody’s rating for Israel sovereign debt is A1. Fitch’s credit rating for Israel is A.
The agency said: “The ratings are supported by Israel's prosperous and diverse economy, strong external balance sheet, and flexible monetary framework. The ratings are constrained by Israel's high debt and interest burden and significant security and geopolitical risks.”
S&P says it expects the Israeli economy to remain stable, based on its assessment that the Israeli government will maintain its current fiscal policy. It noted positively the government’s efforts to increase housing stocks.
“We expect the Israeli economy to weather potential volatility in the global economy and international financial market, thanks to its diversified economy, strong external position, and flexible monetary framework,” it added.
Israeli Finance Minister Moshe Kahlon said in response to the rating decision that “the international credit rating companies continue to express faith in the strength of the Israeli market. The rating announcement means that the government’s efforts in a variety of fields support the resilience of the local economy. We act to bring down the cost of living, narrow social gaps, maintain stability and increase growth.”