Moody's affirms Israel's A1 credit rating

Moody's Investors Service on Thursday affirmed Israel's A1/(P)A1 issuer and government bond ratings with a stable outlook.

In a statement, the credit rating agency cited three factors in its decision to affirm Israel's A1 rating: The country's economic resiliency, which derives from very high economic and institutional strengths, reflected in its strong and improving external position; The government's favorable fiscal dynamics in the recent past, although at risk in light of revisions to the budget rules; and Israel's susceptibility to geopolitical risk, which requires substantial budget allocations to defense on an ongoing basis.