JERUSALEM, May 10 (Xinhua) -- Credit rating agency Standard & Poor's (S&P) affirmed Israel's sovereign credit rating at A on Friday night, with the outlook remaining "negative" amid the country's ongoing multi-front conflict in the Middle East.
"Israel's resumed military operations in Gaza and the ongoing military activities in neighbouring Lebanon and Syria keep security risks for Israel high," read S&P's rating action, adding that "a protracted or more intense military conflict" could dent Israel's "economic, fiscal, and balance-of-payments performance" despite the country's "healthy macroeconomic fundamentals."
S&P noted that the resolution to the Israel-Hamas conflict appears unlikely in the near term, potentially burdening Israel's long-term growth and public finances.
The rating agency also warned of the U.S. impact on Israel's economy, noting that Washington's "evolving position" on the Gaza war and relations with Iran, among others, "adds uncertainty to the regional security outlook," which could in turn affect Israel.
Besides, "U.S. trade tariffs will impinge on Israel's economy both directly and indirectly," it noted.
In 2024, S&P downgraded Israel's credit rating twice amid its multi-front conflict in the region, first from AA- to A+, and then from A+ to A. ■
