S&P: We expect Israel to weather global volatility

Standard & Poor's  picture: Reuters
Standard & Poor's picture: Reuters

Standard & Poor's has reiterated its rating for Israel, with a stable outlook.

International rating agency Standard & Poor's has reiterated its A+/A-1 sovereign rating for Israel, with a stable outlook. This is the second time that the agency has reiterated its rating since the last visit by its representatives to Israel in June 2015.

Standard & Poor's said in its announcement: "We expect the Israeli economy to weather potential volatility in the global economy and international financial market, thanks to its diversified economy, strong external position, and flexible monetary framework.

"We are therefore affirming our 'A+/A-1' foreign and local currency sovereign credit ratings on Israel.

"The stable outlook reflects our expectation that the government will maintain stable public finances and that the impact of security risks on the Israeli economy will be contained over the next two years." Standard & Poor's expects Israel's fiscal deficit for 2016 to be below 3% of GDP. The main challenge the agency sees facing the Israeli economy is the price of housing.

Ministry of Finance Accountant General Michal Abadi-Boiangiu said, "The confirmation of the credit rating testifies to the importance of responsible economic policy that contributes to the stability of the Israeli economy. The Accountant General's Department will continue to take action to keep to the deficit target and continue the trend of a falling debt to GDP ratio."

Minister of Finance Moshe Kahlon said, "The leading international credit rating agencies continue to express confidence in the strength of the Israeli economy. The rating announcement demonstrates that the government's efforts over the whole range of activity contribute to the robustness of the Israeli economy. We are acting to reduce the cost of living, to narrow social gaps, to maintain stability, and to boost growth. We shall continue to strengthen the Israeli economy and Israeli society responsibly and judiciously."

Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Standard & Poor's  picture: Reuters
Standard & Poor's picture: Reuters
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018