Israel’s sovereign credit rating could be downgraded if the war in Gaza expands to other fronts, a director with S&P Global Ratings warned. But if the conflict can be contained, Israel should be able to weather the economic fallout – provided it makes needed budget changes to offset higher spending, said Maxim Rybnikov, director of EMEA sovereign and public finance ratings at S&P. In October, the credit rating agency affirmed Israel’s AA- rating but revised its outlook to “negative” from “stable”, citing risks that the war on Gaza could spread more widely.
