The Fitch credit rating firm on Tuesday said it was maintaining Israel's A+ rating and removing the country from the rating watch negative list. However, the updated rating score reduces Israel from "stable" to negative.
" Geopolitical risks associated with the war in Gaza remain elevated and escalation risks remain present, but Fitch believes the risks to the credit profile have broadened and their impact may take longer to assess, so has removed the RWN on Israel's 'A+' rating," Fitch said.
In February, Moody's downgraded Israel's ratings to A2. The company also added a "negative outlook" to the downgrade in rating, which could lead to another cut in rating if Israel's security, geo-political, and economic situation deteriorates further due to the war in Gaza or as a result of launching another front on the northern border.
An Israeli Finance Ministry official met with Fitch executives in London earlier in the year to convince them to refrain from lowering Israel's rating. He said the 2024 budget that was then weeks from approval, would include steps to reduce the deficit including raising taxes and making substantial cuts to the national budget