The credit rating agency Fitch downgraded yesterday Monday by one notch the credit rating of its public sector Israelfrom level “A+” to “A”, due to the war with Hamas at Gaza Stripwhich is likely “to last until 2025”, according to him.

“The war in Gaza could last until 2025 and there are risks of its expansion on other fronts,” the house estimated in its note announcing the downgrade.

“In addition to human losses, it could also lead to additional military spending, the destruction of infrastructure, as well as cause lasting damage to economic activity and investment, which would entail a further downgrade of Israel’s credit rating outlook.” .

Fiscals have already taken a hit and the country is expected to record a budget deficit this year, Fitch adds.

In February, Moody’s was the first to downgrade Israel’s credit rating, also by one notch, to ‘A2’ because of the war.

Ratings agency S&P Global moderated the move in April, downgrading Israel’s sovereign rating from ‘AA-‘ to ‘A+’ – but keeping it at a level that means it can comfortably repay its debts – citing also the “increased geopolitical risks”.

Earlier yesterday, France, Germany and Britain jointly called for a ceasefire “without further delay” between Israel’s armed forces and Hamas in the Gaza Strip.

The countries mediating the indirect negotiations – Qatar, Egypt and the USA – called a few days ago to resume the talks on the declaration of a cease-fire, which will be accompanied by the release of Israeli hostages in the enclave in exchange for the release of Palestinian prisoners in Israeli prisons. The Israeli government confirmed yesterday that it will participate.

For its part, Hamas last Sunday called on the mediators to present a “roadmap” for the “implementation” of the proposal presented by US President Joe Biden and approved by a “resolution of the UN Security Council”, instead of becoming ” more negotiations”.

According to Fitch, the continuation of the war next year would force Israel to maintain a high level of military spending and cause even more trouble in the tourism, construction and manufacturing sectors in border areas.

Israel has vowed to destroy Hamas, in power in the Gaza Strip since 2007, which the US and EU designate as a terrorist organization after its attack on southern sectors of the Israeli territory on October 7, in which they lost 1,198 people lost their lives, most of them civilians, according to an AFP tally based on official Israeli data.

The large-scale Israeli military operations launched in retaliation in the small Palestinian enclave under siege have so far killed at least 39,897 people, according to the latest figures from the Hamas government’s health ministry.