Credit ratings agency Fitch downgraded on Monday “Israel’s” credit rating from A+ to A, citing worsening geopolitical risks as the assault on the Gaza Strip continues.

“In our view, the conflict in Gaza could last well into 2025 and there are risks of it broadening to other fronts,” Fitch said in a statement – cited by “The Times of Israel”.

Read more: “Moody” Credit Agency downgrades “Israel” rating

Fitch also kept the rating outlook negative, which means another downgrade is possible in the future.

The agency expects “Israel” to permanently up its military spending by close to 1.5 percent of GDP versus pre-war levels.

“Public finances have been hit and we project a budget deficit of 7.8% of GDP in 2024 and debt to remain above 70% of GDP in the medium term,” it said in its statement. .

“Israeli” Finance Minister Bezalel Smotrich downplayed the move as “natural” and claimed the economy would bounce back.

Fitch is the third global credit agency to lower “Israel’s” credit rating since S&P and Moody’s in April and February, respectively.