Moody's: Israel's rating reflects debt payment

Moody's Investors Service said Israel's A2 rating reflects the government's dependable debt payment record and pro-active economic policy in its annual report on the country.

"Israel's A2 rating is stable in spite of high debt ratios because of its advanced degree of institutional development, the strong financial support extant in the event of crisis from the Jewish Diaspora and the U.S. government and the willingness of the government to trim fiscal expenditures and budget deficits as necessary to maintain macroeconomic stability," said Moody's vice president Jonathan R. Schiffer.

Moody's said a recently negotiated loan-guarantee program with the United States, paired with the Ministry of Finance's pro-market, pro-competition structural reform program, has boosted the country's economy by relieving pressures on domestic debt issuance and thereby contributing to lower interest rates that also encourage consumer expenditure

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