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Israel Outlook Cut To Negative By S&P

RATINGS

Israel's long term foreign currency debt rating outlook has been cut to negative from neutral by S&P. The current rating was maintained at AA-.

  • The rating agency stated the negative outlook reflected risks of the conflict with Hamas (see this BBG link) impacting the country's broader fiscal metrics.
  • It stated that it expects the general government deficit to reach 5.3% of GDP in 2023/24 (RTRS). Economic growth is forecast to contract 5% in Q4, before rebounding early next year.

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