S&P sharply downgrades Israeli banks’ ratings

by times news cr

2024-05-03 09:05:39

After S&P Global Ratings cut Israel‘s long-term credit rating two weeks ago, they also decided to revise the projected credit ratings of Israeli banks, moving from stable to negative.

S&P said in a report that the rating of the Israeli banking system was downgraded due to deteriorating relations between Israel and the terrorist organization Hamas, as well as tensions between Israel and Hezbollah. These factors could seriously affect the financial condition of banks in Israel.

The rating company’s specialists confirmed that the war in the Gaza Strip could seriously affect Israel’s long-term financial stability, especially if its credit rating is lowered. They expressed concern about the possible expansion of the conflict and the negative impact of this scenario on the country’s economy.

S&P said an Iranian attack on Israel represents a further escalation of already high geopolitical risks. The possible consequences of the expansion of the conflict in the region could have a serious impact on Israel’s economy and budget.

Earlier, “Cursor” wrote that in the near future the Israeli economy may face serious challenges, which may make it difficult to overcome the financial crisis, which is worsening due to the fighting in the Gaza Strip. The government has to take out loans abroad at a higher interest rate than before the outbreak of hostilities. The rate is 7%, against the previous 5.5%.

In addition, Cursor has already reported that the International Monetary Fund’s macroeconomic forecast for the Israeli economy shows that the country’s GDP this year is expected to grow by no less than 1.6%.

2024-05-03 09:05:39

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