Positive Moody Rating for Small Start-Up Nation Re-Issued
Recently, the prestigious credit rating agency Moody released its updated credit rankings. The Moody credit ratings are used in the business world as a tool for investors to make informed business decisions. The rating agency’s reports are considered to have a high impact on the future success of a company or country. Due to this, the recent report reaffirming the State of Israel's upper-medium rating is something to be lauded by such a small Middle-Eastern country.
Nicknamed “The Start-Up Nation” it should be no surprise that since 2000 Israels Moody's credit rating seen a significant rise. Jumping from an A2 rating to an A1 is no small accomplishment. On top of that, this past week the rating was re-issued. This being an indication of Israel's strong economy. The implications of having a rating this high coupled with a positive outlook can be expected to help attract foreign investors. Potential investors will now look at Israel as a country that year after year and decade after decade creates a more stable economy.
What makes all this more impressive is the issues that Israel has managed to overcome and prevent form affecting the economy. Namely, conflict with the Palestinians and an extended election cycle. This only goes to show the true stability of the economy. Additionally, it can be expected that Israel's strong democratic culture will eventually put an end to the election cycle. When this happens there is potential for an even further improved economic outlook.
The most striking analysis from the Moody report touches on Israel is one of only a number of countries that suffered from the 2008 international economic downturn that now has a lower debt to GDP ratio than prior to the crisis. “Israel’s economic growth has outpaced most other advanced industrial countries over the past decade, driven by a strongly competitive high-tech export sector and a diversified economic base that now includes energy exports,” said Evan Wohlmann, a Moody’s Vice President — Senior Credit Officer and the report’s author.
The economic outlook for Israel is strong. Whether it be in the fields of AI, Technology and the Start-up field as a whole or in natural gas. Prospects for the small nation are good and only look to improve in the next decade. An increase in foreign direct investment are likely. These investments will further the Israeli economy and market strength.
