Credit rating company Fitch has ratified Israel's credit rating at A +

Credit rating company Fitch has ratified Israel's credit rating at A + with a stable outlook, which means that there is no forecast in the near future to raise or lower the rating.
It should be noted that earlier this month, international credit rating company S&P ratified Israel's credit rating and left it at AA-level with a stable outlook
This followed in August 2018, raising Israel's rating to its current level - the highest ever - when it ratified it last February, stating that it is unlikely to be hurt by the election.
The last time Fitch raised Israel's credit rating on foreign currency debt to A + with a stable outlook was in 2016. Since then, Israel has been rated the same credit rating by three major international credit rating companies - S&P, Modi's and Fitch.
On the positive side, the rating company now noted that Israel's growth is close to potential. The average growth over the past five years in real GDP is stronger than that of reference countries and lower volatility. The company expects growth to remain strong in 2020-2021, close to 3% per year, thanks in part to the whale gas reservoir. We also noted that Israel enjoys high funding flexibility. The share of external debt is low, and the country has a deep and liquid domestic market and good access to international capital markets.
On the other hand, she noted that Israel's fiscal situation continues to be a weakness in relation to the "A" rated countries. The company noted that last year the deficit reached 2.9% of GDP (as we had planned for the Treasury when planning the budget, even though the original target was lower). This was after 1.9% in 2017 in light of non-recurring revenue from deals like the sale of Mobilai. The company estimates that this year's deficit will continue to grow, reaching 3.6% of GDP (according to Treasury estimates), which will mean that the debt-to-GDP ratio will continue to rise over the next two years as well. Despite the decline in the debt-to-GDP ratio over the last decade, it is still higher than in the A-rated countries, compared to the median figure of 49%.
The company's announcement states that its analysts expect that political and security risks will continue to limit Israel's credit rating, even though such temporary shocks have not harmed the economy's strength. A military confrontation could increase security spending or damage the economic activity of the economy.
The company notes that reducing the ratio of government debt to GDP or continuing relief from political and security risks (which is not currently visible) could improve Israel's ranking. On the other hand, continuing to increase debt by the government, or worsening the security situation, could lower the rating.
Finance Minister Moshe Kahlon said: "The rating of international credit companies is once again proving the world's confidence in the strength of the Israeli economy. The continued growth policy, investment in infrastructure and fiscal responsibility that the Ministry of Finance will continue to maintain and develop the status of the Israeli economy in the world."
Accountant General Roni Hezekiah said: "The ratification of the rating reflects the strength and stability of the Israeli economy and emphasizes the importance of continuing policies that encourage growth while investing in infrastructure and maintaining fiscal frameworks."