S&P Affirms Israel's 'A' Credit Rating with Stable Outlook

International credit rating agency S&P Global Ratings has maintained Israel's credit rating at 'A' with a stable outlook, deciding against any changes amid recent security and economic developments. This decision avoids altering the assessment of Israel's credit risk. In May, S&P had reaffirmed Israel's 'A' rating and stable outlook, explaining at the time that ceasefire agreements were expected to reduce immediate security risks and that significant further military escalation was unlikely to have major economic consequences. However, the agency cautioned that a substantial deterioration in economic performance or fiscal situation, potentially due to security escalation, could lead to a negative rating action.

In its May report, S&P projected Israel's economy to grow by 5.9% in 2027 but warned of continued pressure on the state budget. The agency had forecast the broad government deficit to reach 6% of GDP in 2026 and the net government debt-to-GDP ratio to hit 68% by 2029. Previously, in November 2025, S&P had upgraded Israel's outlook from 'negative' to 'stable,' while keeping the rating itself at 'A.' This move followed a ceasefire in Gaza, which S&P assessed as reducing the risk of widespread military escalation and easing pressure on the economy, labor market, and public finances.