(Archive photo)
Photo: Shutterstock
Israel's credit rating raised to A+ by Fitch
All three credit ratings agencies have given Israel an A+ credit score; the risk-filled environment of the Middle east is one of the main impediments keeping from Israel being rated higher.
Credit rating agency Fitch last weekend raised the state of Israel's credit rating for its foreign currency debt to the level of A+ (with the top rating being AAA). The state is now rated A+ by all three of the world's largest credit rating agencies: Fitch, Moody's, and Standard and Poor's.
Despite Israel receiving praise for its stable growth and fairly low national debts, Fitch still mentioned that it sees the state of the Middle East as volatile, posing a risk to the Israeli economy.
Israel's credit rating is now A+ with all 'big three' agencies. (Archive photo: Shutterstock)
Fitch representatives stated that further development of Israel's gas reserves could boost its economy further, and that the state enjoys a high level of funding flexibility.
Analysts at Fitch state that GDP growth in Israel is good, even though it has slowed down in the past few years. Several factors are to blame for the slowdown, including an inefficient workforce, a staggering of world trade, and challenges relating to competition.
Geopolitical factors will, according to Fitch, continue to be a possible challenge for the Israeli economy, and the chances for a peace accord with the Palestinians in the foreseeable future are slim.
gad-l@yedioth.co.il
