S&P sees no fiscal shocks after Israel's election

Standard & Poor's  picture: Reuters

Standard & Poor's has affirmed its ratings on the State of Israel, with a stable outlook.

International credit rating agency Standard & Poor's has affirmed its 'A+/A-1' long- and short-term foreign and local currency sovereign credit ratings on the State of Israel, with a stable outlook.

"The stable outlook on Israel reflects our opinion that the outcome of the March 2015 elections will not undermine prudent public finances and the stabilization of government debt over 2015-2018. We also expect the impact of security risks on the Israeli economy to continue to be contained," Standard & Poor's says in its announcement, adding, "We could consider raising our ratings on Israel if fiscal consolidation exceeds our expectations or if there is marked progress in defusing external security risks. Conversely, we could lower the ratings if we see a significant setback in reducing the government's high debt, a significant decline in Israel's growth prospects, a substantial deterioration in security, or if the perceived loss of international support were to carry adverse economic consequences."

Standard & Poor's estimate sthe Israeli economy to have grown 2.5% in 2014, and projects over 3% annual growth for 2015-2018,. "In per capita terms, this equates to trend growth slightly exceeding 1.5% per year. Income per capita is close to $38,000 making Israel one of the highest-income economies globally while exhibiting higher trend growth versus its peers," Standard & Poor's states.

Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Standard & Poor's  picture: Reuters
Standard & Poor's picture: Reuters
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