(Communicated by the Ministry of Finance)

Moody's International Credit Rating Agency published its annual report on the Israeli economy and said: "Israel's A1 sovereign rating and stable outlook are underpinned by its resilient growth model and effective government."

The report by Moody's comes after S&P also took the decision to maintain Israel's credit rating earlier this month.

The international credit rating agency, Moody's, published this evening its report on the Israeli economy in which it stated that Israel had retained its A1 stable outlook. The decision was based on Israel's resilient growth model and effective government.

The report states that, "Key to Israel's economic dynamism is a high-tech export sector that benefits from the country's well-educated, relatively young population, as well as one of the highest levels of per capita investment in research and development. Foreign capital inflows are also substantial, as evidenced by the recent decision of Intel to build its $6 billion new chip plant there." The report is an update to the markets and does not constitute a rating action.

The report also states that Israel's growth is likely to pick up next year and that the current account surplus has shrunk during the past two years. The report warned that "Israel's extensive geopolitical challenges continue to constrain the ratings. These include territorial disputes with the Palestinians, intense civil strife in Egypt and Syria and the stand-off with Iran over its nuclear program. Intermittent conflicts pose near- to medium-term risks for the public finances and impair Israel's standing in the international community."


Below are Israel's current ratings:
S&P          A+ Stable 
Fitch         A Positive
Moody's    A1 Stable