Moody's* affirms Israel's A1 rating and changes outlook from 'positive' to 'stable'
On April 14, 2023, Moody’s Investors Service affirmed the Government of Israel’s A1 rating.
“The affirmation of the A1 ratings reflects Israel's strong economic growth and improving fiscal strength
which Moody's expects to continue. The economy has proven resilient to many economic and
geopolitical shocks over the past decades and has grown at a rapid clip, helped by Israel's globally
competitive high-tech industries. Also, Israel's fiscal and debt metrics have improved rapidly after the
pandemic-induced temporary shock, with the public debt-to-GDP ratio declining by ten percentage
points of GDP within two years to 60.7% of GDP in 2022. Last year, the government recorded a
budgetary surplus of around 0.6% of GDP, helped by strong revenue growth and contained expenditure
growth as most pandemic-related spending ended.”
In addition, Moody’s changed the government of Israel’s outlook to ‘stable’ from ‘positive’.
The change in outlook is a result of recent events surrounding the country’s proposal
to change the country’s judiciary.
(*Israel bonds are not rated.)
Fitch* affirms Israel’s A+ rating with stable outlook
On March 1, 2023, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, highlighting
the country’s “diversified, resilient and high-value added economy” in its latest report. The agency went
on to note that maintaining Israel’s credit rating was also supported by “strong external finances against
a high government debt/GDP ratio, elevated security risks, and a record of unstable governments that
has hindered policymaking.”
Fitch expects Israel’s economy to grow at rate of 2.9% in 2023, despite global challenges and monetary
policy tightening that will curtail private consumption and investment, and anticipates the economy will
return to growth above 3% in 2024 and 2025 backed by exports from the high tech and the defense
industries, strong population growth and increased government spending. (*Israel bonds are not rated.)
S&P* reaffirms Israel’s AA- rating, praising its ‘wealthy, resilient’ economy
Standard & Poor's (S&P) has kept Israel’s favorable rating* unchanged at AA- with a “stable” outlook, in
its latest analysis. The global credit rating agency forecast Israel’s economic growth to increase by 6%
this year, with key expenditure components such as consumption, investment, and exports set to
expand. S&P praised Israel’s “wealthy and resilient economy,” noting positive recent developments such
as the signing of the Abraham Accords that normalized ties and grew economic relations between Israel,
the United Arab Emirates, Bahrain, and Morocco, and the maritime border deal with Lebanon, The
Times of Israel reported on November 15, 2022. (*Israel bonds are not rated.)
Standard & Poor's (S&P) affirms Israel’s AA- rating, citing resilient economy despite security risks
Standard and Poor’s (S&P*), global credit rating agency, has kept Israel’s favorable rating unchanged at AA- with a “stable” outlook, the Finance Ministry stated May 14, 2022, citing the company’s announcement released on May 12. S&P said it expects the Israeli economy to grow at a rate of 5.5% in 2022, following growth of over 8% in 2021, which surpassed forecasts and marked the highest financial growth rate recorded in Israel in 21 years, according to data published in February 2022 by the Central Bureau of Statistics.
The agency cited Israel’s strong economic performance in the past year, a robust economy, and fiscal outturns that helped “net general government debt fall below its pre-pandemic level more quickly,” it highlighted in the announcement. S&P noted Israel’s positive fiscal performance and a strong tech sector, which make up a resilient economy. (*Israel bonds are not rated.)
Fitch* affirms Israel’s A+ rating, citing strong 2021 economic performance.
On February 16, 2022, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, noting the country’s strong economic performance and a reduction of the fiscal deficit in 2021. Fitch also stated Israel’s economy rebounded strongly “by about 6.5% in 2021 due to the removal of COVID-19-related restrictions and a strong rise in private consumption.” Additionally, on February 16 Israel’s Central Bureau of Statistics said Israel’s economy grew by 8.1% in 2021, surpassing previous forecasts and marking the highest financial growth rate recorded in Israel in 21 years. According to CBS data, the fourth fiscal quarter of 2021 saw a staggering 16.6% growth in GDP, bringing the yearly average to 8.1%, the highest since 2000, when Israel’s growth rate stood at 8.4%. (*Israel bonds are not rated.)
Fitch* commends Israel’s budget approval, stating Israel’s financial position benefited this year from its strong economic rebound, the gradual removal of pandemic restrictions, and particularly strong fiscal revenues from the hi-tech sector.
The ratings agency issued a statement on November 11, 2021 noting that the budget “reduces political uncertainty and potential risks to the public finances, affirming the government’s capacity to advance legislation... in line with our expectations when we affirmed the sovereign rating at ‘A+’ with a Stable Outlook in July 2021.” Israel also currently has a Stable AA- rating from S&P Global Ratings, and a Stable A1 rating from Moody’s. Take part in the 70-year legacy of achievement of Israel Bonds by investing online at israelbonds.com. (*Israel bonds are not rated.)
Israel's economic resilience praised
Israel Bonds, founded 70 years ago to strengthen Israel’s economy, proudly notes the latest assessment of Israel from Fitch Ratings*, which, in its July 29, 2021 report, observed, “The economy has been more resilient to the pandemic shock than many rating peers, reflecting the strong performance of high-tech industries and the early and fast progress in vaccination.” The word “resilient” appears numerous times throughout the assessment, highlighting the fact that Israel’s economy is well-positioned to perpetuate its positive momentum. Become a stakeholder in Israel’s economy – invest online at israelbonds.com. (*Israel bonds are not rated)
Moody’s affirms ‘stable’ outlook for Israel despite Hamas conflicts
In a May 19, 2021 report, Moody’s* affirmed Israel’s ‘stable’ outlook, stating, “Given the long- standing resilience of the Israeli economy to geopolitical developments, we expect the heightened conflict to have only a modest impact on the country’s economic recovery from the pandemic and on the government’s near-term fiscal metrics.” The report added, referencing Israel bonds, “Israel's deep and highly developed domestic market as well as exceptional access to external markets – also through an active diaspora bond programme – will support debt affordability.” (*Israel bonds are not rated.)
Standard & Poor’s (S&P) affirms Israel’s ‘stable’ outlook and strong credit rating
In a May 14, 2021 report, Global ratings agency S&P* affirmed its long-term sovereign credit rating on Israel at “AA-/A-1+” and maintained its outlook at “stable,” despite security and political risks escalating sharply in the last few days. The report added, “The combination of a very effective and swift COVID-19 vaccination campaign, strong technology sector performance and rising gas exports should still underpin the country’s GDP growth of 5% in 2021.” (*Israel bonds are not rated.)
Standard & Poor's (S&P) maintains Israel’s strong AA- credit rating, despite the global
COVID-19 pandemic’s effects
Standard and Poor’s (S&P*), the global credit rating company, has kept Israel’s credit rating unchanged at its high AA- level with a stable outlook, despite the COVID-19 crisis that the country is experiencing, the company announced March 30, 2021.
The agency also said it expects growth to recover soon and lauded Israel for having sound debt policy, which it said continues to justify its rating of AA-/Stable/A-1+. (*Israel bonds are not rated.)