Global ratings agency Moody's has changed Israel's outlook to "positive" from "stable" and affirmed its A1 credit rating.
Moody's report, issued on Friday, noted the improved economic and diplomatic ties with the moderate Arab states and says the agency may upgrade Israel's credit rating again in the near future.
The report said it upgraded Israel's economic outlook to "positive" from "stable" over its solid fiscal performance and economic resilience.
Moody's further noted that affirming Israel's credit rating at A1 reflects its ability to balance a dynamic fiscal environment and a strong institutional framework against long-term structural changes in the labor market and ongoing geopolitical risks.
Finance Minister Moshe Kahlon welcomed the report's findings, saying it was "even more proof that Israel's economy is stable and robust.
"Today, Israel's economy has presented the best macro data since the country was founded – the lowest unemployment rate, solid growth, a decrease in debt-to-GDP ratio, and the highest credit rating ever," he said.
Finance Ministry Accountant General Rony Hizkiyahu also welcomed the findings, saying, "Raising Israel's rating outlook for the second time in a year reflects our strong fiscal performance and underscores the importance of pursuing a policy that encourages growth while reducing the debt load."
