Credit rating agency S&P Global downgraded the outlook on Israel’s sovereign debt (AA-/A-1+) to “negative” – ​​from “stable” – on Tuesday, citing the risk of Israel’s war army against the Palestinian Islamist movement Hamas since October 7 to spread and have a wider impact on the country’s economy and security situation.

Last week, international credit rating agencies Moody’s and Fitch also put the outlook for Israel’s long-term credit (A1) on review, with a possible downgrade due to the war and the risk of its escalation and spread.

In a statement, S&P Global noted that “currently, we estimate that the conflict will remain centered in Gaza and will not last more than three to six months.”

He added that he may restore the outlook of the credit to the “stable” level if there is a resolution of the conflict and consequently “reduction of regional and domestic security risks, without material long-term consequences for the Israeli economy and public finances.” He added that international support could mitigate some of the negative macroeconomic effects for Israel.