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

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

(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, noting 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.”

…read more
Source: JNS.org

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Posted by on August 16, 2013. Filed under Business News,Israeli News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.