Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Gaza Ministry of Health: Direct threats to residential areas surrounding hospitals are part of "Israel’s" systematic plan targeting the healthcare system
Gaza Ministry of Health: We renew our urgent appeal to the relevant authorities to intervene and protect healthcare institutions
Gaza Ministry of Health: We warn against reaching the point of a complete collapse of the healthcare system in the southern part of the Strip
Gaza Health Ministry: Nasser Medical Complex in Khan Younis going out of service would lead to a humanitarian disaster with unpredictable consequences
Palestinian sources: Several displaced Palestinians were reportedly injured after being targeted by occupation forces while waiting for aid west of Rafah
Israeli media: A senior European Union official hinted that 'Israel' would be held accountable for violating international law in Gaza
Al-Qassam Brigades spokesperson Abu Obeida: The losses incurred by the occupation today in Khan Younis and Jabalia are an extension of a series of top-tier operations
Al Mayadeen's correspondent in South Lebanon: The invading Israeli force is digging a trench and erecting earthen berms, amid detected activity suggesting preparations to install espionage equipment
Al Mayadeen's correspondent in South Lebanon: An Israeli force breaches the "technical fence" in the Wazzani area
Israeli media: 4 Israeli soldiers killed in the Gaza Strip

S&P downgrades 'Israel's' rating to negative citing 'war risks'

  • By Al Mayadeen English
  • Source: Agencies
  • 25 Oct 2023 10:07
3 Min Read

The expansion of the Israeli aggression on Gaza threats the Israeli economy.

  • x
  • A protestor holds a placard reading
    A protester holds a placard reading "Israel kills children" during a demonstration calling for peace in Gaza, at the Place de la Republique in Paris, on October 24, 2023. (AFP)

S&P Global Ratings announced on Tuesday that it was downgrading "Israel's" credit outlook from stable to negative, citing threats to the economy from an expansion of the Israeli aggression on Gaza.

"The negative outlook reflects the risk that the Israel-Hamas war could spread more widely or affect Israel's credit metrics more negatively than we expect," the credit rating agency said in a notice.

"We currently assume the conflict will remain centered in Gaza and last no more than three to six months," it added.

Since Operation Al-Aqsa Flood started, the Israeli occupation has imposed stifling measures on the West Bank, closing all crossings leading to Palestinian territories and checkpoints between cities. These measures were taken to "prevent attacks", Israeli media claimed.

According to Gaza's Health Ministry, over 6,000 Palestinians, many of whom are children, have been martyred in the Gaza Strip as a result of Israeli airstrikes.

Read: 2,300+ Gaza children killed, 5,300+ injured in war: UNICEF

S&P said on Tuesday that it revised the outlook for its "AA-" long-term foreign and local currency ratings on "Israel" to negative.

Commenting on the downgrade, Israeli Finance Minister Bezalel Smotrich described it as "alarmist" and said he did not anticipate major Israeli deficits despite the situation.

Related News

Birmingham University drops allegations against pro-Palestine students

Gaza’s food queues are 'a mousetrap': FT

The 2023-2024 budget was "no longer relevant" given the war on Gaza and would be amended, Smotrich added.

While putting the direct cost of the war at around $246 million a day to "Israel", he said in an Army Radio broadcast that he did not yet have an assessment of the indirect costs on an economy partly paralyzed by the mass mobilization of military reservists and extensive Palestinian rocket salvos.

The Israeli government's A1 credit ratings were placed under review for reduction by Moody's Investors Service less than a week ago, citing the "unexpected and violent conflict between Israel and Hamas" as justification for their decision. This is when S&P made its decision.

Furthermore, Fitch Ratings declared that it was putting "Israel's" A+ foreign- and local-currency issuer default ratings under negative watch due to "conflict-related risks".

According to S&P, the Israeli economy is predicted to decrease by 5% in the fourth quarter of this year compared to the third, with a potential recovery in early 2024.

Read: S&P downgrades US banks credit ratings, shares drop

This results from the drafting of reservists, decreased commercial activity, disturbances connected to security, and other elements like a confidence shock.

In addition to an increase in defense spending, S&P predicted that additional fiscal policies aimed at supporting individuals and companies would result in a larger government deficit.

If the aggression increases "materially", S&P could further cut the entity's ratings, it added.

Read: Wall Street slumps amid interest rate, economic growth concerns

  • Gaza Strip
  • Operation Al-Aqsa Flood
  • Israel
  • Hamas
War on Gaza

War on Gaza

Most Read

Lebanon's PM Nawaf Salam meets with US envoy Morgan Ortagus in Beirut on April 5, 2025 (Dalati Nohra via AP)AP)

Morgan Ortagus to exit US role in Lebanon amid policy shift

  • Politics
  • 1 Jun 2025
A Palestinian woman mourns as she embraces the body of her daughter Mayar Abu Odeh, 8, who was killed in an Israeli army strike on Gaza. at Al-Shifa Hospital in Gaza City, Wednesday, June 4, 2025. (AP)

French port workers block arms shipment to 'Israel' amid Gaza genocide

  • Politics
  • 4 Jun 2025
It may well be due to the longstanding relationship between MI6 and HTS, via Inter Mediate, that Britain was the first Western country to recognise their assumption of government in Syria. (Al Mayadeen English; Illustrated by Zeinab El-Hajj)

How MI6 helped HTS seize Syria

  • Opinion
  • 31 May 2025
New Syrian group claims Golan strike, vows resistance to 'Israel'

New Syrian group claims Golan strike, vows resistance to 'Israel'

  • Politics
  • 4 Jun 2025

Coverage

All
War on Gaza

Read Next

All
https://english.almayadeen.net/news/politics/pentagon-chief--nato-likely-to-back-trump-s-5--defence-spend
Politics

Europe spent $3 trillion on defense, but got little in return - FT

Power, parties, and scandal: Trump’s ties to Epstein: Telegraph
Europe

Power, parties, and scandal: Trump’s ties to Epstein - The Telegraph

Eilat port as seen from the sea, occupied Palestine, March 12 2009 (wikimedia commons)
Politics

YAF operations forced 80% plunge in Eilat port revenues in 2024

EU backs International Criminal Court after US sanctions judges
Europe

EU backs International Criminal Court after US sanctions judges

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS