S&P reaffirmed Israel's credit rating at A and maintained the outlook as "stable".
This decision reflects the firm's assessment that the ceasefire agreements between Israel and Hamas and between the U.S. and Iran will largely hold, thereby reducing immediate security risks.
S&P economists estimate that without a further wide-scale military escalation, the macroeconomic effects will be limited and the Israeli economy will begin to recover from the second half of 2026.
The Accountant-General commented, "The recent geopolitical developments support a decline in the level of immediate risk, and approving the rating at this time reflects confidence in the resilience of the Israeli economy and its ability to cope even in complex periods. The combination of strong fiscal performance, stable financial markets and an innovative and diversified economy continues to strengthen investor confidence in Israel. We continue to act consistently and responsibly to maintain fiscal frameworks, to carefully manage government debt and its composition, and to bolster market confidence."