The International credit rating company Fitch Ratings has affirmed Israel’s long-term foreign-currency issuer default rating (IDR) at ‘A+’ with a Stable Outlook, lending support to Israel’s financial conduct, especially amid the global Coronavirus (COVID-19) crisis.
Israel’s IDRs balance strong external finances, diversified high value-added economy and solid institutional strength against a government debt/GDP ratio that is high relative to peers, and ongoing political and security risks.
Fitch says that the global repercussions of the COVID-19 pandemic and domestic containment measures will cause Israel’s real GDP to contract by 5.6% in 2020, but projects a rebound in 2021, with GDP growing by 5%.
Moody’s listed Israel as A1, with a stable and positive outlook.
Finance Minister Moshe Kahlon stated on Friday that the “confirmation of Israel’s credit rating indicates the great confidence of the global economic system that the State of Israel will succeed in the global crisis following the Coronavirus.”
“This is what gives hope to Israeli citizens that the Israeli economy will return to its economic strength as it was on the eve of the crisis,” he said.
Accountant General Roni Hezekiah added that this high ranking confirmation “during an era of unprecedented global crisis demonstrates the company’s confidence in the Israeli economy and emphasizes the importance of maintaining fiscal discipline as we deal with the consequences of the Corona in Israel.”