Ceasefire brings relief for Israel’s finances, credit agencies say

Major credit rating agencies said on Tuesday that the ceasefire agreement between Israel and Hamas would help alleviate the strain on Israel’s public finances and could improve its sovereign credit rating, reported Reuters.

According to Fitch Ratings, the ceasefire increases the chances of Israel surpassing expectations for its fiscal and economic performance in 2025, with potential benefits for the Middle East’s credit risk overall.

The ceasefire’s adherence could help mitigate the risks to Israel's finances, which were downgraded by major agencies, including Moody’s, S&P Global, and Fitch Ratings, for the first time last year.

Moody’s analyst Christian Fang said if the ceasefire is effectively implemented and leads to de-escalation, it would reduce risks to Israel's credit strength.