The capital market company Fitch Ratings announced that Israel’s credit rating dropped from A+ to A with a negative forecast, N12 reported on Tuesday overnight.
In April, The Jerusalem Post reported that the company had left Israel’s credit rating at A+. Furthermore, the company said Israel was removed from Rating Watch Negative while changing Israel’s outlook from stable to “Negative Outlook.”
In response to Fitch Ratings’s announcement, Finance Minister Bezalel Smotrich posted on X, formerly Twitter, stating, “The State of Israel is in the midst of its longest and most costly existential war. This war is being fought on multiple fronts simultaneously and has been ongoing for almost a year. The downgrade in rating due to the war and the geopolitical risks it creates is natural.”
He further emphasized that the country’s economy is robust, and is managed “correctly and responsibly.” He further countered the Fitch Ratings’s negative forecast, stressing, “Economic indicators point to the resilience of the economy and the high level of confidence we have in the markets.”
Smotrich promises economic recovery
Smotrich then suggested that restoring security and winning the war “on all fronts,” are the precursors to “transition the economy from war to a growth trajectory.”
He then stated the ministry will “pass a responsible budget that continues to support all the needs of the war on the front and the home front while maintaining fiscal frameworks and advancing growth.”
At the end of his post, Smotrich vowed that “very soon, the credit rating will start to rise again”
