S&P Global Ratings downgraded Israel's sovereign credit rating on Thursday, citing increased geopolitical risk stemming from the ongoing conflict with Hamas and tensions with Iran. The rating was lowered from AA- to A+ as a result of these factors.
In a statement, S&P analysts expressed concerns about the heightened confrontation with Iran, which has added to the already significant geopolitical risks facing Israel. While the analysts do not anticipate a broader regional conflict, they expect that the conflicts with Hamas and Hezbollah will persist throughout 2024, contrary to their previous assumption of shorter military engagements.
