Night time in Tel Aviv
Fitch lowered Israel's credit rating to 'A' from 'A+' on Monday, citing worsening geopolitical risks. It continues to hold a negative outlook.
"In our view, the conflict in Gaza could last well into 2025 and ther are risks of it broadening to other fronts," Fitch said in a statement.
Fitch expects Israel to permanently increase military spending by close to 1.5% of GDP compared to pre-war levels.
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The good news is that ratings agencies are wrong on just about everything.