The International Classification Agency S&P whaled the Israel war for the first time. In a special survey published today, S&P analysts write, “developments in the Iranian conflict Iran are testing previous assumptions of the S& P Global classifications by increasing the risk of the negative side, including due to the possibility of increasing escalation.”
In other words, the S&P reminds investors that it has given Israel a negative view of its classification due to the potentially emerging scenario of a direct and severe war between Israel and Iran. If expectations are achieved, the Israeli S&P classification will decrease from A to deficient. This, after classifying categories, has already classified the country in its ads last year in April and October.
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S&P maintains negative expectations for the classification of Israel
The Rating Agency warns that “the negative view of the long -term credit rating of Israel reflects the danger that the escalation of the military conflict can significantly weaken the Israeli economy, its financial stances and balance of payments.”
Among the risks approved by the S&P in a constant escalation: “shocks on the confidence of the foreign and local investor, capital, volatility in the financial markets and exchange rate.” It also warns of “the direct physical damage to the infrastructure and the risks associated with growth and public finance.”
Israel has noticed that its modified goal of destroying its Iranian nuclear capacity may take at least two weeks, perhaps longer ” – indicating a taller campaign than the 2024 revenge strikes. The agency has identified four possible pressure scenarios, with the most severe scenario that includes” regional and non -regional allies, including Iran and its agent, the United States and the Gulf. “
It was published by Globes, Israel Business News – En.globes.co.il – on June 17, 2025.
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