Gaza ceasefire should take pressure off Israel's credit rating, Fitch says
Israel's "A" rating is currently on a downgrade warning, or a "negative outlook" in rating agency-speak
A ceasefire in the war in Gaza should be positive for Israel's under-pressure credit rating, Fitch's top sovereign rating analyst said today (16 January).
Israel's "A" rating is currently on a downgrade warning, or a "negative outlook" in rating agency-speak.
"We've got Israel on negative, I guess that's something that's really related to public finances associated with the war," Fitch's head of sovereign ratings James Longsdon said at a conference held by the firm.
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"To the extent that (war) can sort of stabilize, that would be positive I think there."
Israel's rating had never been downgraded before last year, but the heavy cost of the last 15 months of fighting in both Gaza and Lebanon saw it cut multiple times by the major rating firms such as Fitch, S&P Global and Moody's.
A complex ceasefire accord between Israel and militant group Hamas, which controls Gaza, emerged on Wednesday after mediation by Qatar, Egypt and the US.
The truce will formally take effect on Sunday. According to residents and authorities in the Palestinian enclave, however, Israel has intensified its strikes on Gaza since the deal was announced, killing at least 70 people.
