International credit rating agency S&P has reiterated its sovereign rating for Israel at 'A' with a stable outlook. The agency has thus opted not to alter its assessment of Israel’s credit risk, despite security and economic developments over the past few months.
In May, S&P reaffirmed Israel’s credit rating at 'A' with a stable outlook. At that time, the agency explained that ceasefire agreements were expected to reduce immediate security risks and that, barring any further large military escalation, the impact on the economy would likely be limited. However, the agency warned that a significant deterioration in economic performance or the fiscal situation, possibly because of security escalation, could lead to a negative rating action.
In its May report, S&P estimated that the Israeli economy would grow by 5.9% in 2027, while warning of continued pressure on the state budget. At the time, the firm projected that the broad government deficit would reach 6% of GDP in 2026, and that the net government debt-to-GDP ratio would reach 68% by 2029.
In November 2025, S&P revised Israel’s rating outlook from "negative" to "stable," while maintaining the rating itself at 'A'. This decision followed the ceasefire in Gaza, which the firm assessed as having reduced the risk of a large military escalation, as well as easing pressures on the economy, the labor market, and public finances.
Published by Globes, Israel business news - en.globes.co.il - on November 8, 2026.
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