Standard & Poor's (S&P) has affirmed its long- and short-term sovereign ratings on Israel at ‘AA-/A-1+,’ with a ‘stable’ outlook
In its May 15, 2020 assessment, S&P* praised Israel's wealthy and resilient economy heading into the COVID-19 pandemic, swift policy actions to mitigate the crisis, and capacity for Israel to absorb the shock. All of which, along with the high-tech sector, sets up the economy well for a strong and early recovery. Highlighting how Israel stands apart is the fact that as of May 11, S&P had downgraded 20 percent of the countries it reviewed and put another 15 percent on negative outlook. (*Israel bonds are not rated)
Moody's affirms Israel's 'A1' rating, revises outlook to 'stable,' references “exceptional access to external funding,” which includes Israel bonds
While many economies are being downgraded, Moody’s* expressed confidence in Israel, stating, "The affirmation of the A1 rating reflects Israel's robust medium-term growth potential, strong external position and highly credible institutions, which Moody's expects will help its credit profile to withstand the impact of the severe but temporary crisis arising from the coronavirus outbreak." In the April 24, 2020 assessment, Moody’s also observed, “Israel's economy has demonstrated resilience to a range of domestic and external shocks, supported by its highly competitive tech sector which benefits from the country's strong capacity for innovation, while the start of production from the Leviathan gas fields at the end of 2019 will, over time, further enhance the country's already favorable external position.” A particular point of pride is Moody’s reference to “exceptional access to external funding,” which includes Israel bonds. (*Israel bonds are not rated)
Fitch affirms Israel at 'A+' with an outlook of ‘stable,’ citing, among other factors, "an active Diaspora bond program (Israel Bonds)"
As countries grapple with economic repercussions from the coronavirus pandemic, Israel remains well-positioned to stabilize its economy. According to an April 23, 2020 assessment from global ratings agency Fitch*, “We project a rebound in 2021, with GDP growing by 5%.” In observing that “features of public debt are largely favorable,” Fitch cited, among other factors, “an active Diaspora bond program (Israel Bonds)” in affirming its long-term foreign currency issuer default rating at 'A+' with an outlook of ‘stable.’ The Bonds legacy of partnership was recently reiterated through its commitment to the Finance Ministry to help strengthen the economy in this challenging time. (*Israel bonds are not rated)