Tel Aviv: The military conflict between Iran and Israel has raised geopolitical and security risk in the Middle East, with some sovereigns' credit profiles potentially being adversely affected if the violence escalates or spreads, Fitch Ratings says, APA-Economics reports. The ongoing tension has put the region on alert, assessing the potential economic and security fallout.
According to Azeri-Press News Agency, the spillover from the conflict appears to be within the range that can be absorbed at Israel's 'A'/Negative rating level. Fitch Ratings has expressed confidence in Israel's position, noting that the fighting will likely remain contained between the two nations and is not expected to persist for more than a few weeks.
Fitch Ratings further elaborated on Israel's strong defensive countermeasures, stating that Iranian strikes have not had a material economic impact on Israel. The agency also highlighted that Iran's capacity to retaliate against Israel via proxies in Gaza and Lebanon has been compromised by Israel's military campaigns in those regions. This assessment suggests that the damage from Iran's military response to Israel's latest attacks is not expected to be on a scale that would affect Israel's credit rating.