Fitch Affirms Israel’s A+ Rating, Citing Strong Growth
The credit rating agency affirmed the rating with a stable outlook, estimating the deficit will grow to 3.6% of GDP in 2019, in line with the forecasts of the Israeli Ministry of Finance
Omri Milman | 13:03 01.09.2019
On Thursday, Fitch Ratings Inc. affirmed IsIsrael's long-term foreign-currency issuer default rating of A+, with a stable outlook. In early August, Standard & Poor's (S&P) did the same. Fitch stated Israel’s macroeconomic performance has been strong, adding that its five-year average real GDP growth is “stronger than rating category peers and growth volatility has been lower.” The agency forecasts that Israel’s growth will remain strong in 2020-2021 despite fiscal tightening, close to 3% per year. Part of the tightening is expected to be alleviated by the start of gas output from the Leviathan offshore field in 2020. Fitch has also stated Israel’s external balance sheet remains strong, its international liquidity ratio has continued to improve, and its net external creditor position remains significantly stronger than the 'A' median and stronger than the 'AA' median.