Israel downgraded to A+ by S&P
Key points:
- Lowered to A+ from AA-, outlook negative
- Sees general government deficit to widen to 8% of GDP this year
- Recent increase in confrontation with Iran raises already-elevated geopolitical risks
- Higher deficits will also persist over the medium term
- Expect net government debt to peak at 66% of GDP in 2026
66% of GDP isn't bad at all by large-economy standards but Israel certainly faces some unique risks in raising cash.