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Fitch places Israel on negative ratings watch | |
(about 5 hours later) | |
A prolonged conflict could result in a significant deterioration of the country's credit score, the agency says | |
The US-based credit rating agency Fitch placed Israel’s A+ sovereign credit score on 'rating watch negative' on Tuesday due to geopolitical risks arising from the Gaza conflict. | |
That adverse monitoring reflects the risk that the ongoing conflict may escalate to include multiple actors over a long period. | That adverse monitoring reflects the risk that the ongoing conflict may escalate to include multiple actors over a long period. |
The expansion of hostilities, in addition to human casualties, could prompt significant additional military spending, the destruction of infrastructure, and a sustained change in consumer and investment confidence. According to the rating agency, all these factors would significantly deteriorate Israel’s credit metrics. | The expansion of hostilities, in addition to human casualties, could prompt significant additional military spending, the destruction of infrastructure, and a sustained change in consumer and investment confidence. According to the rating agency, all these factors would significantly deteriorate Israel’s credit metrics. |
“The combination of Israel’s dynamic, high-value added economy, the record of resilience to regional conflict, preparedness for military confrontations, solid fiscal and external metrics and cash buffers make it unlikely a relatively short conflict largely confined to Gaza will affect Israel’s rating,” Fitch said. | “The combination of Israel’s dynamic, high-value added economy, the record of resilience to regional conflict, preparedness for military confrontations, solid fiscal and external metrics and cash buffers make it unlikely a relatively short conflict largely confined to Gaza will affect Israel’s rating,” Fitch said. |
Israel has never been downgraded by Fitch or other international rating agencies such as S&P Global and Moody’s. However, Moody’s warned last week that a prolonged conflict could hurt the country's credit rating. | Israel has never been downgraded by Fitch or other international rating agencies such as S&P Global and Moody’s. However, Moody’s warned last week that a prolonged conflict could hurt the country's credit rating. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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