Worldwide rankings company S&P has addressed the Israel-Iran conflict for the primary time. In a particular survey printed immediately S&P’s analysts write, “Developments within the Israel-Iran battle are testing S&P International Rankings’ earlier assumptions by rising draw back danger together with because of the prospect of additional escalation.”
In different phrases S&P is reminding buyers that it had given Israel a detrimental outlook for its ranking due to the potential rising situation of a direct and extreme conflict between Israel and Iran. If the forecast comes true, Israel’s ranking at S&P will drop from A to A minus. This, after two ranking downgrades that S&P has already made for the nation in its bulletins final 12 months in April and October.
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The rankings company warns that “the detrimental outlook on Israel’s long-term credit standing displays the danger that the escalation of the army battle might considerably weaken the Israeli economic system and its fiscal and stability of funds positions.”
Among the many dangers the S&P lists within the occasion of a continued escalation: “Shocks to international and home investor confidence, capital flight, and volatility in monetary markets and the alternate charge.” It additionally warns of “direct bodily injury to infrastructure and related dangers to progress and public funds.”
S&P famous, “Israel says its said purpose of destroying Iran’s nuclear functionality might take at the least two weeks, probably longer” – suggesting a extra protracted marketing campaign than the 2024 retaliatory strikes. The company outlined 4 attainable strain eventualities, with probably the most extreme situation involving “regional and non-regional allies, together with Iran and its proxies, the US and Gulf allies.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on June 17, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
