S&P downgrades Israel rating on heightened geopolitical risk
ISRAEL received its first-ever sovereign downgrade as S&P Global Ratings lowered its credit rating to A+ from AA- on heightened geopolitical risks for the region.
The nation was cut by one notch to the fifth-highest score and on a par with Bermuda and China. The outlook remains negative.
“The recent increase in confrontation with Iran heightens already elevated geopolitical risks for Israel,” the statement said.
All three major rating firms have put out warnings on Israel’s credit score since the onset of the war with Hamas. On Oct 25, S&P became the last to revise the outlook to negative on risks the conflict spreads into the country. Fitch Ratings and Moody’s Investors Service had already placed the nation’s credit score on negative watch and on review for downgrade, respectively.
The shekel has tumbled since Hamas staged the attacks on Oct 7, posting the longest streak of declines since 1984. The cost of hedging against losses has soared as traders brace for the next phase of the war, undaunted by the central bank’s resolve to defend the currency. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
US official urges China, Russia to declare only humans, not AI, control nuclear weapons
Banking giants race to Riyadh as MBS steps up pressure campaign
Biden now calls ally Japan ‘xenophobic’ along with China, Russia
Japanese companies struggle with yen’s continued weakness
Australia’s March goods trade surplus narrows to more than 3-year low
Hong Kong holds rate as Fed signals inflation concerns