Zionist Entity Faces Third Credit Downgrade Amid Escalating War and Regional Tensions

In a dramatic new blow to the Zionist entity’s economy, the relentless escalation of the war and the mounting impact of regional support fronts in Lebanon, Yemen, and Iraq—coupled with the looming threat of a major military retaliation—have triggered a third downgrade of Israel’s credit rating since the onset of the Battle of Al-Aqsa Flood. This latest downgrade, accompanied by a fresh surge in the budget deficit, underscores a sharp and undeniable decline in the enemy’s economic outlook, despite its desperate attempts to mask the severity of the situation.

The international credit rating agency Fitch announced the downgrading of the Zionist entity’s credit rating from ‘A+’ to ‘A’, while maintaining a negative outlook. This suggests a possible further downgrade in the future.

The agency attributed this downgrade to “increasing geopolitical risks with the ongoing war in Gaza” and “the risk of the conflict spreading to other fronts.”

This marks the third time the credit rating of the Zionist entity has been downgraded since the beginning of this war. Earlier this year, Moody’s and Standard & Poor’s downgraded the enemy’s credit rating while maintaining a negative outlook due to the geopolitical risks posed by the war.

In simpler terms, a credit rating downgrade means that the Zionist entity is no longer considered an economically safe zone, and it will be forced to pay higher interest on any loans as a result. This will lead to increases in taxes, reductions in services, and higher prices, which have already been on the rise since the start of the war.

A credit rating downgrade also triggers an exodus of more investors, as the rating reflects the overall economic situation. A downgrade implies that the Zionist entity is no longer a suitable environment for investments and business, a fact confirmed by numerous Hebrew economic reports.

Just a few days ago, the Zionist entity’s Ministry of Finance announced a new surge in the budget deficit, with the deficit rate reaching 8.1%, surpassing the enemy government’s forecast for the entire year, which was 6.6%.

This development coincided with a decline in the “Israeli” stock market and the value of the shekel, due to fears of the upcoming regional response to the assassination of two major martyrs, Ismail Haniyeh and Fouad Shukr, and the bombing of fuel tanks in Al-Hodeidah province. This reflects the direct impact of the “geopolitical risks” mentioned by the credit rating agency.

The latest credit rating downgrade of the enemy indicates that its losses from the war, and the impact of the support fronts in Lebanon, Yemen, and Iraq, have accumulated significantly to the extent that mere anticipation of further escalation constitutes a blow to the enemy’s economy, let alone the escalation itself.

According to Reuters, the shekel continued to decline yesterday, Monday, losing 1.7% of its value against the dollar, while the stock market closed with a drop due to “investors’ concerns over a possible attack on Israel,” as reported by the agency.

Reuters also quoted Fitch, the credit rating agency, as saying that the increasing tensions between the Zionist entity and Iran, along with the forces of the Resistance Axis, mean “significant additional military spending, destruction of infrastructure, and harm to economic activity and investment.”

As such, the inevitable forthcoming response from the Resistance Axis, regardless of its nature and objectives, is expected to have a significant economic impact on the Zionist entity. This will likely include further declines in stock and currency indices, and possibly additional credit rating downgrades, along with direct losses, the extent of which remains open to all possibilities.

While the Zionist entity’s Minister of Finance attempted to downplay the significance of the latest credit rating downgrade, the newspaper Yedioth Ahronoth responded to his remarks by stating: “The economy is taking a hit, the government budget deficit is rising to new record levels, inflation remains persistent, and growth is low. Not only that, but investors—who understand well what is happening in the Israeli economy—have already pulled 50 billion shekels from the Israeli stock market, which is lagging tens of percentage points behind global markets.”