The agency highlighted concerns about potential security threats, including retaliatory missile attacks against Israel, which could exacerbate the impact of tension on the economy.
It was an agency Moody’s It cut Israel’s credit rating by two notches to Baa1 last week and warned of downgrading it to “junk” if the current escalating tension with Hezbollah turns into a full-scale conflict.
She said Standard & Poor’s “We now believe that military activity in Gaza and escalation of fighting across Israel’s northern border, including a ground incursion into Lebanon, may continue into 2025, with risks of retaliation from Israel.”
The agency maintained its “negative” outlook for Israel.
