S&P Global Ratings has lowered Israel's credit from 'AA-/A-1+' to 'A+/A-1.'
Israel's economy saw a sharp 20.7% contraction after the Oct 7 attack in Q4 2023, with significant increases in debt and military spending.
The shekel also fell over 4% against the dollar this year.
Further downgrades are possible if the Gaza conflict and tensions with Iran escalate.
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