Moody's Investors Service, the respected provider of credit ratings and credit-related research in the global financial markets, has this month reaffirmed Israel’s credit rating of A2 and given the state a stable outlook assessment. This despite the ongoing PLO war and the threat of regional developments detrimental to Israeli security. The recent Atid-EDI business report quoted Moody's Vice President Jonathan Schiffer, author of the report, as saying, "The aggravated geopolitical variable is already factored into the ratings, which otherwise would be much higher."
The Moody's report stated that the outlooks for all Israeli ratings are stable. The current regional military balance and the strong external financial support that would be available in a crisis from the Jewish Diaspora and from the US government are factors offsetting the possible instability of the local security situation. Another important factor cited by Moody’s and reported by Atid-EDI is the willingness of the Israeli government to cut expenditures and fight budget deficits, in an effort to maintain economic stability. In particular, Moody’s noted the positive free market developments of the second half of the 1990s, which expanded competition into various public sectors, increased privatization and increased fiscal responsibility.
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The Moody's report stated that the outlooks for all Israeli ratings are stable. The current regional military balance and the strong external financial support that would be available in a crisis from the Jewish Diaspora and from the US government are factors offsetting the possible instability of the local security situation. Another important factor cited by Moody’s and reported by Atid-EDI is the willingness of the Israeli government to cut expenditures and fight budget deficits, in an effort to maintain economic stability. In particular, Moody’s noted the positive free market developments of the second half of the 1990s, which expanded competition into various public sectors, increased privatization and increased fiscal responsibility.
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Spend Passover with Arutz Sheva at a resort in Jerusalem, Tel Aviv or Kfar Pines (near Hadera). Click here for info.