S&P Maintains Israel Credit Rating at A with Stable Outlook
Credit agency S&P has maintained Israel's credit rating at A with a stable outlook following its semi-annual review, opting not to issue a public report as core economic and security factors remained unchanged.
Credit rating agency S&P has completed its semi-annual review of Israel's sovereign credit rating, maintaining it at A with a stable outlook without issuing a public report. According to the agency's policy, when key rating factors remain unchanged, public reports are not always published. The lack of a report serves as the core message, signaling stability without indicating any immediate movement toward an upgrade.
Under European Union regulations, S&P is required to review sovereign ratings at least every six months on pre-scheduled dates. While changes in ratings or outlooks mandate public disclosure, the agency opted against issuing a comprehensive report this time. Concurrently, S&P published detailed reports on other entities, including Poland, Andorra, Burkina Faso, Uganda, and Italy's Campania region.
Israel's rating currently stands two notches below the AA- level recorded prior to the outbreak of the war, following downgrades to A+ in April 2024 and to A in October 2024. S&P previously revised Israel's outlook from negative to stable in November 2025 following the ceasefire in Gaza, while reaffirming the rating and outlook in May.
S&P's muted approach contrasts with recent evaluations by Moody's and Fitch following local elections. Moody's rates Israel at Baa1 with a stable outlook, noting that while elections will not immediately impact the rating, institutional risks persist regarding judicial independence. Meanwhile, Fitch maintains Israel at A with a negative outlook, citing risks of political instability and potential challenges in approving the upcoming state budget.
