Current:Home > ScamsIsrael’s long-term credit rating is downgraded by S&P, 2nd major US agency to do so, citing conflict -TrueNorth Finance Path
Israel’s long-term credit rating is downgraded by S&P, 2nd major US agency to do so, citing conflict
View
Date:2025-04-15 11:10:42
Israel’s long-term credit rating is being downgraded by S&P, which cited the risk of military escalation with Iran. It is the second major U.S. credit ratings agency to do so.
There was an apparent drone attack at a major air base and a nuclear site near the central city of Isfahan early Friday, which is suspected of being part of an Israeli retaliation for Tehran’s unprecedented drone-and-missile assault on the country days ago.
S&P’s downgrade was issued shortly before the strike in Iran, and almost three months after Moody’s, another major U.S. credit agency, downgraded Israel’s rating due to the “ongoing military conflict with Hamas.”
S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on Israel to ‘A+’ from ‘AA-’ and the short-term ratings to ‘A-1’ from ‘A-1+.’
The long-term downgrade means Israel’s credit rating has moved from a “very strong capacity to meet financial commitments,” to “a strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances,” according to S&P.
“In our view, the recent increase in confrontation with Iran heightens already elevated geopolitical risks for Israel,” the credit ratings agency said. “We expect a wider regional conflict will be avoided, but the Israel-Hamas war and the confrontation with Hezbollah appear set to continue throughout 2024--versus our previous assumption of military activity not lasting more than six months.”
S&P’s outlook on Israel’s long-term ratings is negative.
The cost of the war is a major drain on Israel’s budget and all three U.S. credit ratings agencies, Moody’s, S&P, and Fitch, which also has offices in London, have issued warnings on Israel’s credit standing since the surprise attack on the country by the ruling Hamas militant group.
S&P typically issues sovereign credit ratings on scheduled dates, but does break with that practice if events merit. S&P’s will issue another ratings review for the country on the date it was originally scheduled to do so, on May 10.
No Iranian official directly acknowledged the possibility that Israel attacked, and the Israeli military did not respond to a request for comment. However, tensions have been high since the Saturday assault on Israel amid its war on Hamas in the Gaza Strip and its own strikes targeting Iran in Syria.
veryGood! (95747)
Related
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- 3 killed in racially-motivated shooting at Dollar General store in Jacksonville, sheriff says
- Ten-hut Time Machine? West Point to open time capsule possibly left by cadets in the 1820s
- Check Out the Most Surprising Celeb Transformations of the Week
- What to watch: O Jolie night
- Judge to hear arguments on Mark Meadows’ request to move Georgia election case to federal court
- Clark County teachers union wants Nevada governor to intervene in contract dispute with district
- Russia says it confirmed Wagner leader Prigozhin died in a plane crash
- 'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
- Here's Your Invite to Olivia Culpo and Christian McCaffrey's Wedding Date Details
Ranking
- Meet first time Grammy nominee Charley Crockett
- Takeaways from AP’s investigation into sexual harassment and assault at Antarctica’s McMurdo Station
- The dream marches on: Looking back on MLK's historic 1963 speech
- On the March on Washington's 60th anniversary, watch how CBS News covered the Civil Rights protest in 1963
- Bodycam footage shows high
- The Highs, Lows and Drama in Britney Spears' Life Since Her Conservatorship Ended
- Wear chrome, Beyoncé tells fans: Fast-fashion experts ring the alarm on concert attire
- Jacksonville, Florida, shooter who killed 3 people identified
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
Multiple people killed in Jacksonville store shooting, mayor says; 2nd official says shooter is dead
Verstappen eyes ninth straight F1 win after another Dutch GP pole. Norris second fastest
How a pair of orange socks connected two Colorado cold case murders committed on the same day in 1982
San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
Winners and losers of Trey Lance trade: 49ers ship former third overall pick to Cowboys
The dream marches on: Looking back on MLK's historic 1963 speech
Jacksonville, Florida, shooter who killed 3 people identified