S&P credit ratings agency
S&P credit ratings agencyBrendan McDermid/Reuters

Ratings agency S&P Global on Thursday cut Israel's long-term ratings to A-plus from AA-minus following Iran’s drone and missile attack on Israel and amidst the already elevated geopolitical risks for Israel.

"We forecast that Israel's general government deficit will widen to 8% of GDP in 2024, mostly as a result of increased defense spending," S&P Global said in its statement, as quoted by Reuters.

Earlier this month, the Fitch credit rating agency reaffirmed Israel's credit rating at an A+ level, the removal of the "Negative Watch" and an update of the rating outlook from "Stable" to "Negative."

According to the company, "Geopolitical risks associated with the war in Gaza remain elevated and escalation risks remain present, but Fitch believes the risks to the credit profile have broadened and their impact may take longer to assess, so has removed the RWN on Israel's 'A+' rating."

In February, the Moody’s credit rating agency downgraded Israel’s credit rating from A1 to A2 due to the war with Hamas. It was the first such downgrade in Israel's history.