Fitch to downgrade Israeli credit ratings
Fitch, the international credit ratings agency, has announced that it is reviewing Israel's “A-” foreign currency debt rating, “F1” short-term foreign currency rating, and “A+” domestic currency rating , because of what it said was an "escalation of political tensions in recent months.
The international rating giant also said that economic damage could be worse than previously estimated.
In particular, Fitch referred to the deteriorating security situation in the region and the slowing Israeli economy. Furthermore, the agency’s analysts were critical of the way in which Prime Minister Ariel Sharon was performing on the job. The agency also said it was likely that Israel's budget deficit exceed two percent of GDP in 2001. – (MENA Report)
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