The Standard and Poor’s (S&P) global credit rating agency announced that it has upgraded Israel from A+ to -AA, the highest rating Israel has ever had, putting it on par with the Czech Republic and Qatar.
Ynet News reported that the new rating is a very significant achievement for the Israeli economy and indicates confidence in the government’s ability to maintain a responsible fiscal policy.
On the practical level, the high rating will allow the government to raise funds under better terms.
Raising the rating to -AA puts Israel among a relatively small list of 17 countries and places it above others such as China and Japan.
S&P analysts noted the success of Israel’s government, despite internal coalition differences, in passing the 2017-2018 budget as well as that for 2019 – and more important, its success in maintaining fiscal discipline, Ynet reported.
S&P’s dramatic announcement came just days after global-ratings agency Moody’s changed Israel’s outlook to “positive” from “stable” and affirmed its A1 credit rating.
The Moody’s report, issued last month, noted the improved economic and diplomatic ties with the moderate Arab states and said the agency may upgrade Israel’s credit rating again in the near future.
The report said it upgraded Israel’s economic outlook to “positive” from “stable” over its solid fiscal performance and economic resilience.
Prime Minister Benjamin Netanyahu stated that “the decision by Standard & Poor’s to raise Israel’s credit rating joins a similar decision by Moody’s. These decisions reflect the strength of the Israeli economy and the correct and responsible economic policy that we are leading on behalf of Israel’s citizens.”