Fitch Ratings has lowered "Israel's" credit rating from "A+" to "A" with a negative outlook, citing the ongoing war against the Gaza Strip which has had a tremendous impact on "Israel's" public finances. 

Analysts at Fitch noted that the downgrade "reflects the impact of the continuation of the war in Gaza, heightened geopolitical risks, and military operations on multiple fronts." It was also reported that they anticipate the Gaza conflict could persist until 2025 and potentially expand to other fronts.

Fitch also highlighted that increased military spending, human losses, infrastructure damage, and continued economic and investment disruptions could lead to further credit deterioration. Regional tensions remain high.

The agency forecasts "Israel's" budget deficit will reach 7.8% of GDP this year, up from 4.1% in 2023, and that public debt will remain above 70% of GDP in the medium term.

Last week, "Israel" announced its 12-month budget deficit had widened to 8.1% of GDP in July, compared to 7.7% the previous month. Finance Minister Bezalel Smotrich described the conflict as an existential war, the longest and most economically costly in "Israel's" history.

Additionally, Tel Aviv has dropped 17 places in Henley & Co's 2024 richest cities ranking, now at 47th. The city has 10 billionaires, 82 capitalists with over $100 million, and 24,300 millionaires, a 12% decrease from last year. Approximately 300 investors with liquid assets of $1 million or more left Tel Aviv last year.

Read more: Moody's downgrades 'Israel's' credit rating due to war on Gaza