Skip to main content

Posts

Showing posts with the label credit ratings

S&P Global about Israel's bonds

  Credit soundness affirmed. Israel can continue to finance its war.   This month, S&P Global -- the company formerly known as Standard & Poor's', the bond rating giant -- affirmed the long and short term foreign and local currency sovereign credit ratings of the state of Israel at A/A-1.  Of course, since they aren't idiots, the authors of this report observed that prolonged or intensified military conflict can negatively impact fiscal soundness and balance-of-payments performance.  So the resumed military operations in Gaza and 'ongoing military activities' in Lebanon and Syria, could lead to a ratings deterioration. The time for that deterioration is not yet, though.  But the report also says that Israel has  strong fiscal fundamentals (which means it has a sufficiently productive economy to create tax debtors and it is good at collecting from them), which have gifted it with a  net external asset position  and a current account su...