The United States-based credit rating agency S&P Global Ratings downgraded Israel’s sovereign debt from A+ to A on Tuesday, citing regional conflicts surrounding the Jewish state’s borders.
The unscheduled adjustment follows similar decisions by Moody's Ratings last week and Fitch Ratings in August, as all three companies expect the war-related fiscal difficulties faced by Jerusalem will persist well into 2025.
S&P forecasts Israeli economic growth will end the year at 0 percent and is unlikely to surpass 2.2 percent for the next four quarters. The government’s budget deficit is anticipated to reach 9 percent of GDP by the start of January and is expected to remain at 5 percent until at least 2027.
The report also warned further downward modifications could occur within the next 24 months if the security situation in the Middle East does not improve.
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