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      Israel's 'A' Credit Rating Rock Solid

      Standard & Poor's announced Israel's credit rating will remain untouched with a solid forecast, but its US-backed securities took a hit.
      By Gabe Kahn.
      First Publish: 8/8/2011, 10:13 PM

      Money.
      Money.
      Flash 90

      US-based financial rating giant Standard & Poor's announced on Monday that it was leaving Israel's credit rating at "A" along with a solid rating forecast, but its US-backed securities have taken a hit.
       
      S&P did, however, downgrade Israel's US securities-backed credit rating to AA+, in accordance with its latest historic downgrade of the United States' credit rating.
       
      The bonds in question were issued in 2003 and amount to $6 billion. These bonds are currently ranked at AAA.
       
      The Israeli government can still issue $3.8 million-worth of US-backed bonds, but given the US' recent credit tumble, should new bonds be issued, they would automatically be ranked AA+.
       
      S&P first upgraded Israel's credit rating to A in 2007. In January 2009, it reaffirmed its decision, further giving Israel's market a "soild" forecast.
       
      In April, the Moody's rating agency reaffirmed Israel's credit rating as well, leaving it unchanged at the A1 level.