Moody’s affirms Israel’s A1 credit rating, citing ‘economic resiliency’

(Israel Hayom/Exclusive to JNS.org) Moody’s affirmed Israel’s A1 international credit rating on Thursday, commending the Israeli government for its budgetary discipline and reforms.

Israeli Finance Minister Yair Lapid (pictured) said the Moody's decision to affirm Israel's A! credit rating “showed the company’s confidence in the economic agenda [of the Israeli government] and the new state budget.” Credit: Yesh Atid party.

In 2008, the credit rating agency upgraded Israel’s rating to A1, and it has held steady since. The company said that Israel’s high standing was made possible by the overall fiscal health of the economy, the government’s move to rein in spending, and the austerity measures it had introduced.

“The first factor driving the affirmation of Israel’s A1 government bond ratings relates to its economic resiliency,” Moody’s Investors Service said on Thursday in its Ratings Action report for Israel, noting that despite suffering a drop in demand for its exports in Europe, the Israeli economy had successfully weathered the global financial crisis and would likely enjoy a boost from newly tapped gas fields.

“The second driver for affirming Israel’s rating is the continued reduction in the government’s debt-to-GDP ratio, which contrasts sharply against trends in many other advanced country peers,” the analysts wrote. They noted that the government’s passage of the 2013 and 2014 budget was a welcome development in light of the “upward revisions of the government deficit targets.”

Israeli Finance Minister Yair Lapid said the Moody’s rating “showed the company’s confidence in the economic agenda [of the Israeli government] and the new state budget.”

Posted on August 16, 2013 .