SAN FRANCISCO August 12. 2024 (Saba) - Fitch Ratings downgraded the Israeli entity's credit rating by one notch on Monday from "A+" to "A", warning that the war on Gaza could last until 2025 and weigh on economic activity in the occupying entity.
"The conflict in Gaza could continue until 2025 with risks of spreading to other fronts," Fitch said in a note.
"In addition to the human toll, this could result in significant additional military spending, destruction of infrastructure and more lasting damage to economic activity and investment, leading to a further deterioration in Israel's credit metrics," it added.
According to Fitch, public finances have been affected, as the Zionist entity is expected to record a budget deficit this year.
Fitch said that the continuation of the conflict until next year will force the occupying entity to continue its high military spending, and will cause further disruption to the tourism, construction and production sectors in the border areas.
J.A
resource : SABA
| more of (International) |