Israel's Rating Cut by Fitch as War Seen Lasting Into 2025.

Fitch Ratings has downgraded Israel's sovereign debt by one notch to A, with a negative outlook, due to the ongoing military conflict and geopolitical risks. Fitch analysts predict that the conflict in Gaza could last until 2025 and potentially expand to other fronts. The rating agency also warns of potential economic damage, increased military spending, and a higher budget deficit. Israel's credit ratings have been under pressure for months, with Moody's downgrading the country's credit rating in February. However, the market reaction to Fitch's downgrade was relatively muted, with small losses in bonds and the currency performing well. Israel's Finance Minister has pledged to pass a responsible budget that supports the needs of the war while maintaining fiscal frameworks and promoting growth. [Extracted from the article]