Standard and Poor’s upgrades Israel from A+ to AA-; Cites low government debt and strong economy; Netanyahu: These decisions reflect the strength of the Israeli economy and the correct and responsible economic policy that we are leading on behalf of Israel’s citizens.
Israel received an upgraded credit rating from the S&P credit agency over the weekend given its “economic strength and fiscal improvement”.
Standard and Poor’s upgraded Israel’s score from an A+ to AA- in its half-year report on Saturday, the highest score Israel has received to date.
Prior to the increased credit rating, both S&P and Moody’s Investors Service’s raised their ratings for Israel’s from “stable” to “positive”. Israel’s strong economy and a trend of lower government debt led to the increases in scores and outlook. It cited reasons for the upgrade in a press release given Israel’s “prosperous and resilient economy, strong institutions, ongoing fiscal consolidation, and robust external performance”.
Moody’s cited the main reason for Israel’s outlook upgrade as decrease in government debt, reflecting a “prudent budgetary framework and a robust growth performance,” as well as a “resilient economy, supported by the dynamism of the high tech sector, increased energy independence and a strengthening external position, which, if sustained, will continue to support more favorable growth rates than similarly rated peers.”
Prime Minister Netanyahu praised S&P’s upgrade, releasing the statement “The decision by Standard & Poor’s to raise Israel’s credit rating joins a similar decision by Moody’s. These decisions reflect the strength of the Israeli economy and the correct and responsible economic policy that we are leading on behalf of Israel’s citizens.”
Photo: Pavel Ignatov/Shutterstock.com
