Moody: the outlook for Israel's credit rating is stable

The rating agency Moody called Israel's economy "resilient and dynamic" but said that could change because of the upheavals in the Middle East
 
The credit rating agency Moody issued last week its annual credit report on Israel, affirming the A1 blue-chip rating and praising the country's "economic, institutional and financial strength."
 
The rating agency called Israel's economy "resilient and dynamic" and said that the outlook for Israel's credit rating is stable but that could change because of the upheavals in the Middle East.
 
The report was released following the annual visit made by the agency's representatives to Israel about half a year ago, during which they met with the Minister of Finance, the Governor of the Bank of Israel and other senior executives in the public and business sectors.
 
The agency's representatives note in the report that the A1 rating balances Israel's economic and financial strength with the geopolitical challenges facing it. Vice President in Moody's Sovereign Risk Group, Mr. Anthony Thomas, says in the report that the Israeli economy is strong and dynamic and notes favorably the coherent macroeconomic policy implemented by the Israeli government.
 
The agency's representatives add that the monetary and fiscal policy supported economic activity and prevented a pronounced recession in the Israeli economy during the global crisis.
 
The agency's representatives also remark favorably on the limited effect the economic crisis has had on the Israeli government's debt figures, as evidenced by the gradual narrowing of the government deficit and the fact that the government ended 2010 with a lower debt-to-GDP ratio than on the eve of the crisis. They judge that Israel's economic model based on high-tech exports is performing well and underpins favorable medium-term growth prospects.