Reuters and Sharon Wrobel – Times of Israel Aug 13, 2024
Credit ratings agency Fitch downgraded Israel’s credit rating from A+ to A on Monday, citing worsening geopolitical risks as the Israel-Hamas war drags on.
It also kept the rating outlook negative, which means a further downgrade is possible.
“In our view, the conflict in Gaza could last well into 2025 and there are risks of it broadening to other fronts,” the ratings agency said in a statement.
Finance Minister Bezalel Smotrich downplayed the move as “natural” amid a war and said Israel’s economy would bounce back following responsible steps he plans to advance.
Fears that the conflict in Gaza could turn into a broader Middle East war escalated late last month after the killing of Hamas leader Ismail Haniyeh in Iran and top Hezbollah military commander Fuad Shukr in Beirut.
Israel’s shekel fell as much as 1.7% against the dollar on Monday and stocks ended over 1% lower in Tel Aviv, as investors fret over a possible attack on Israel.
Heightened tensions between Israel and Iran and its allies could imply significant additional military spending, destruction of infrastructure and damage to economic activity and investment, Fitch said.
The ratings agency expects the Israeli government to permanently increase military spending by close to 1.5% of GDP versus pre-war levels as the country strengthens its border defenses.
“Public finances have been hit and we project a budget deficit of 7.8% of GDP in 2024 and debt to remain above 70% of GDP in the medium term,” Fitch said. It forecast that the country’s debt will remain on an upward trend beyond 2025 if higher military spending and economic uncertainties continue.
Other factors driving the downgrade are the country’s “political fractiousness, coalition politics and military imperatives” that are putting new fiscal consolidation measures at risk, Fitch added.
Fitch is the third global credit agency to lower Israel’s credit rating since the outbreak of the war, joining S&P and Moody’s. In April, Fitch removed Israel from “credit rating negative” and affirmed the country’s A+ credit rating — but with a negative outlook — citing uncertainty about the duration and magnitude of the war with Hamas and its toll on the government’s debt burden.
In response to the downgrade, the Finance Ministry’s top accountant Yali Rothenberg called on the government to create as much certainty as possible for the Israeli economy, investors and rating agencies by acting swiftly to formulate a responsible state budget for 2025.
Keep a close eye on how much Lucky Larry Silverstein (of 9/11 WTC “Fame” ) has insured Fitch HQ for…
in the event of any “unforeseen” (((accidents)))…
like the builing – and everyone in it – going up in flames… 😏
It’s crap the lot of it, there isn’t going to be a war, it’s all just a distraction just like all the fearmongering on this site. THEY ARE ALL IN ON IT AND THIS IS A COMPROMMISED “TRUTH” PLATFORM.
This article examines the Labour Party ministers who have received money from Israeli lobbies. And wow were they cheap. I haven’t added it up because of my contempt for them but these scumbags have sold themselves and British policy for less than three-quarters of a million pounds. You whores.
https://dorseteye.com/why-the-silence-on-gaza-atrocities-labour-ministers-oh-yes-of-course/
Every day a fully prepared Iran doesn’t attack, is a victory for Iran. Day by day, the Israeli economy is failing and the Israelis sit on edge, while the US fleets wait at the ready costing billions of dollars per day. Just be prepared for a USS Liberty attack or Gulf of Tonkin false flag by the Israelis… they are getting impatient for war.
A commenter on Craig Murray’s latest article We Are The Bad Guys (Page 2 near bottom, Stevie Boy) says Britain is going to accept 60,000 British-Israelis. Why should we take them? They were okay with genocide until things got too hot for them only recently.
https://www.dailymail.co.uk/news/article-13740979/uk-ministers-plans-evacuate-israel-iran-hezbollah.html
https://www.unz.com/article/an-intricate-fabric-of-bad-actors-working-hand-in-hand-so-is-war-inevitable/#comment-6711218
@grimsson
“It’s crap the lot of it, there isn’t going to be a war, it’s all just a distraction just like all the fearmongering on this site. THEY ARE ALL IN ON IT AND THIS IS A COMPROMMISED “TRUTH” PLATFORM.”
I agree that this is a theatre production. Most believe in its authenticity owing to the triumph of their passionate side over their discerning natures. As to whether this platform is compromised: that is a good question.
On one hand I often think the host Rixon Stewart seeks to elicit genuine critique by posting what he knows to be “Daily Mail” level “alternative” journalism. In this perspective of TTS site, the host is sincere, hard-working, and wanting a better world. His knowledge of the world may be quite shallow since he sources and reads articles aimed at a fairly wide dispersion. We all have different ideas on whether nukes exist for example, but if he spent 0.01% of his time on what the comments have presented on this rather than listening to say Max Igan, he would realise a profound truth.
And this realisation, more so than the next one I offer that examines that the TTS is a state honey-pot, is why I often think typing away at the keyboard could be more useful spent by barking at dogs in the street. But I quibble. I have learnt a lot from the comments of fellow posters and I have changed my mind on many things. Heck, the article posted on going bare foot to become electrically grounded, whether true or not, has encouraged me do away with footwear at home.
So, is the TTS a honey-pot? Is it Rixon Stewart or a construct “Rixon Stewart”? The day to day, year in and year out servicing of this website is a tremendous feat of citizen journalism, notwithstanding my previous criticisms, if it is Rixon Stewart and not TEAM “Rixon Stewart”. If there wasn’t a site like this would MI5 create one? I have tried to elicit a response from the man — or the team — but with no response. “The articles are more important” than the comments. I recall he did actually remove this comment he made, but I have a memory like an elephant on such things.
My final analysis is that whether Rixon Stewart is a hardworking and well-meaning man that is too important to deal with my questions — except to castigate me for swearing — or whether the TTS is a honeypot, I maintain that a city on a hill can’t be taken. I don’t know about anyone else, but I always feel that if I don’t say anything on an important aspect, it won’t get said. I feel it as a duty. As Colour Sgt Bourne replied in Zulu when asked “Why us?”, he said, “Because we’re here lad, no one else, just us”
For the Jews, war is 24-7-52-10-10-10-3