Israel's Credit Rating Downgraded to A+ Amid Growing Geopolitical Risks

S&P cites heightened tensions with Iran and increased defense spending as key factors for the downgrade.

S&P Global Ratings lowered Israel's long-term sovereign credit ratings to A+ from AA-, marking a significant drop.
The downgrade was influenced by ongoing military conflicts with Hamas, potential escalations with Iran, and increased defense expenditures.
Israel's government deficit is projected to widen to 8% of GDP in 2024, primarily due to heightened defense costs.
Recent attacks and military actions have escalated tensions, contributing to the negative outlook on Israel's credit rating.
All three major U.S. credit ratings agencies have now issued warnings or downgrades regarding Israel's economic outlook due to these conflicts.