S&P Sees Israel’s 4th Election Boosting Medium-Term Fiscal Risks

Israel could face increased medium-term fiscal risk because of the uncertainty caused by the government’s collapse earlier this week, according to a report from S&P Global Ratings.

Israel’s election is set for March 23, the fourth in two years, and early polling shows no candidate with a clear path to a governing majority. The ratings agency warned of the potential for “continued political brinkmanship and the possibility of another inconclusive election result,” and political gridlock reducing the state’s ability to cut its debt load.

In November, the S&P affirmed Israel’s AA- rating for the country’s long-term foreign currency debt, with a stable outlook.

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