Fitch Warns of Possible Israel Credit Downgrade Amid Heightened Risk of Wider Conflict
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Fitch placed Israel's credit ratings on Rating Watch Negative due to heightened risk of large-scale military conflict.
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The conflict widening could include Hezbollah, other militant groups, and Iran.
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Fitch says Israel's economy is resilient but major escalation could still hurt credit metrics.
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There is increased risk of Iran and Hezbollah joining the conflict at scale.
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A wider, longer conflict could lead to fiscal drain, economic disruption, and negative rating action.