Fitch places Israel on ‘Rating Watch Negative’

Tel Aviv, Oct 18 : International credit rating agency Fitch has placed Israels sovereign debt rating of "A+" on "Rating Watch Negative".

The decision follows a shift in the perception of geopolitical risk in the wake of the ongoing Israel-Hamas conflict, Ynet News reported.

The announcement signifies that the company plans to closely track security developments in the region over the next six months.

If there is a significant deterioration in the security situation, this might result in a negative rating action.

However, if such deterioration does not occur, the "negative watch" status will be lifted, the media outlet reported.

Finance Ministry Accountant General, CPA Yaheli Rotenberg, clarified that "this is a deterioration in the rating outlook preceding a potential downgrade if the security situation, particularly in the northern sector, further worsens".

"We were already aware three days ago about a potential impact on Israels rating, but at this point, its a deterioration, not a downgrade.It indicates that Fitch still views Israels economy as strong and stable, and theres no need for Israel to downgrade itself at this stage," the media outlet quoted Rotenberg as explaining.

san/sha