S&P noted that Israel had weathered the global financial crisis reasonably well, with per capita growth rates averaging 2.4% in the past five years
The international credit rating agency Standard & Poor’s announced on Friday that it had raised Israel’s credit rating from A to A+. The company said that the decision reflects the government’s responsible economic policy. It noted that the country had weathered the global financial crisis reasonably well, with per capita growth rates averaging 2.4% in the past five years. The outlook on the rating is stable.
The S&P praised the country's fiscal leadership for "careful macroeconomic management" and noted anticipated revenues from recently discovered natural gas deposits offshore. S&P warned however that ratings were constrained by significant geo-political risks and a sizeable public sector debt burden.
Bank of Israel governor Stanley Fischer welcomed the move saying that "The Israeli economy's good state is a result of the government's budget policy, the Bank of Israel's monetary policy and the business sector's success".
Finance Minister Yuval Steinitz said "this is an honorable accomplishment for the Israeli economy and its successful handling of the global crisis, which has been threatening Western economies for about three years."
Steinitz noted that the accomplishment is particularly impressive in light of the debt crisis and high unemployment rate which have affected the credit rating of countries around the worldwide.
