Fitch Ratings has downgraded Israel’s credit rating from “A+” to “A,” citing concerns that the ongoing conflict with Hamas in Gaza could extend well into 2025. The agency warned that the prolonged conflict may lead to heightened military spending, significant infrastructure damage, and sustained economic disruption. Fitch noted that this situation could further deteriorate Israel’s credit metrics and exacerbate the country’s budget deficit.
The Israeli government responded by asserting that the economy is robust and will improve once the conflict is resolved, emphasizing their commitment to overcoming the current crisis. Meanwhile, international efforts are underway to negotiate a ceasefire and a deal for hostage releases. Despite the downgrades, Israel remains engaged in ongoing diplomatic discussions and military responses amid regional tensions.
