Israel’s Credit Rating Cut by Fitch as Gaza War ‘Could Last Well Into 2025’
Svetlana Ekimenko
Israel’s war with Hamas continues to batter its public finances, resulting in a downgrade of its sovereign debt rating by Fitch Ratings from “A+” to “A”. The agency cited heightened geopolitical risks and ongoing military operations as key drivers, with the conflict potentially lasting well into 2025. This downgrade follows Moody’s first-ever sovereign downgrade for Israel earlier this year.
Israel’s economy has suffered a significant contraction due to the ongoing Gaza war, with projected budget deficits and rising debt levels. Prime Minister Benjamin Netanyahu remains optimistic about the nation’s credit rating despite the challenges.
The conflict, which began in October 2023, has escalated tensions in the region, leading to tens of thousands of casualties and retaliation threats from Hamas and Iran. Recent developments have hindered ceasefire talks, further prolonging the crisis.
economy, palestine-israel conflict, israel, hamas, gaza strip, credit rating, moody’s, fitch ratings
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