Smotrich: Fitch credit downgrade ‘natural’ amid war, but Israel’s economy is strong

Finance Ministry Bezalel Smotrich calls Fitch’s decision to downgrade Israel’s credit rating “natural” amid the ongoing war with Hamas in Gaza and maintains that the country’s economy is strong.

“Israel is in the midst of an existential war – the longest and most expensive in its history,” says Smotrich in a statement. “The war is being waged on several fronts and has been going on for almost a year.”

“The downgrade amid the war and the geopolitical risks it creates is natural,” he adds.

Smotrich states that the government will “pass a responsible [2025] budget that will continue to support all the needs of the war while maintaining fiscal frameworks and promoting growth.” He asserts that Israel’s credit rating will subsequently rise “very quickly.”

Fitch cut the country’s credit rating to A from A+, citing the “continuation of the war in Gaza, heightened geopolitical risks and military operations on multiple fronts.”