Standard & Poors downgrades Israel, too

Standard & Poor’s said the ratings for loan guarantees Israel obtains from the United States dropped commensurately with its downgrading of the U.S. credit rating.

The rating agency said this week that the $6 billion Israel receives in guarantees dropped from its highest rating of AAA to AA+, as has the overall U.S. credit rating.

Unaffected was S&P’s overall rating for Israel, which remained at A/A-1, a level reporting a “strong” capacity to meet financial commitments.

Another major credit rater, Moody’s, had said Israel might see its loan guarantees downgraded if the United States was downgraded. Moody’s, however, did not downgrade its U.S. rating.

On Aug. 7, the Tel Aviv Stock Market reacted to the U.S. credit downgrade with its largest one-day loss in nearly three years. — jta