The international financial services and credit ratings agency Standard & Poor’s affirmed last week Israel’s international credit rating as positive, giving it an A+ score.

The agency’s economic forecast for Israel defined the country’s economy as “stable” and projected it would grow by 3% between 2015 and 2018. The review noted that a decrease in the deficit goals may upgrade Israel's credit rating further.

However, the rating may be downgraded should the deficit grow beyond government goals of 2.9%, or should the security situation escalate. S&P noted that Israel's economy, "is strong, diverse and thriving, with a positive foreign trade balance and flexible monetary policy. Industrial, exports, and the services sectors in Israel have high added value, in part because of considerable investment in research and development, which in 2013 was 4.2% of the GDP -- the highest among OECD countries."

But the Israeli economy is not without its challenges, S&P said, naming a high debt ceiling as well as geopolitical factors and regional threats that may destabilize the Middle East, deter foreign investors, and curb growth potential. Prime Minister Benjamin Netanyahu said, “Reaffirming Israel’s credit rating reflects the global community’s faith in Israel’s responsible and balanced fiscal policies over the years.”