S&P Global has downgraded Israel's long-term credit rating from 'A+' to 'A,' citing risks to the country’s economy and public finances from ongoing military conflicts, particularly those involving Gaza, and potential escalation with Hezbollah, an Iran-backed armed group in Lebanon. The agency raised concerns over security threats, including the possibility of retaliatory attacks, which could deepen the economic impact.
The downgrade follows a recent review by Moody’s, which warned of possible credit rating risks for Israel if tensions with Hezbollah or other regional actors were to evolve into a broader conflict. However, Moody’s current credit rating for Israel is higher than "Baa1," and the warning was about a potential downgrade, not a current one.
Potential Conflict Spillover Cited as Key Risk
S&P Global noted the likelihood of prolonged military activity, stating, “We now consider that military activity in Gaza and an upsurge in fighting across Israel's northern border—including a ground incursion into Lebanon—could persist into 2025, with risks of retaliation against Israel.” The agency emphasized that such developments pose a significant risk to Israel’s fiscal and economic stability.
Despite the downgrade, S&P maintained a "negative" outlook for Israel, reflecting uncertainty over regional security and potential economic strain from prolonged conflicts.
Concerns about Israel’s regional tensions, particularly with Hezbollah and in Gaza, have contributed to investor unease, prompting downgrades and warnings from major credit rating agencies.


Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 



