Live updates: Follow the latest from Israel-Gaza
S&P Global Ratings downgraded Israel's credit rating amid the escalation of hostilities with its Middle East neighbours, the third such action from a major ratings agency in a span of less than two months, while also warning of a delayed economic recovery.
The country's long-term sovereign credit rating was lowered to “A” from “A+", with a negative outlook due to “heightened security risk”, New York-based S&P said on Tuesday.
The “A” rating is considered upper-medium investment grade and is five levels above junk status on S&P's ratings scale. An investment-grade rating makes it easier for a country to access capital markets and raise funding when it seeks to borrow.
S&P also expects the recovery in Israel's economy to be held back by the conflict, with real growth forecasts now also downgraded to 0 per cent for 2024 and 2.2 per cent for 2025, down from previous estimates of 0.5 per cent and 5 per cent, respectively, S&P said.
With S&P's move, the so-called big three ratings agencies have now all downgraded Israel's credit rating: Fitch Ratings and Moody's Investors Service made similar decisions in August and last week, respectively.
On Tuesday, Moody's downgraded the insurance financial strength rating (IFSR) to Baa1 from A3 on Clal Credit Insurance, one of the two largest credit insurers in the Israeli market and a subsidiary of Clal Insurance Company. The outlook was changed to negative from stable.
“We believe that, longer term, Israel's economy will be more durably weakened by the military conflict than expected earlier, leading to some pressure on Clal's profitability, asset quality and capital adequacy,” it said.
The agency also downgraded to Baa2 from Baa1 the long-term senior secured ratings of Israel Electric Corporation, which is almost completely owned by the Israeli government.
Along with its war in Gaza, which has been going on for nearly a year, Israel has launched a ground invasion against Hezbollah in southern Lebanon and has threatened to retaliate to Iran's Tuesday missile attack.
“We see an increasing likelihood that Israel's conflict with Hezbollah, given the recent escalation of fighting, becomes more protracted and intensifies, posing security risks for Israel,” analysts at S&P wrote in their report.
“We now consider that military activity in Gaza and an upsurge in fighting across Israel's northern border – including a ground incursion into Lebanon – could persist into 2025, with risks of retaliation against Israel. The latter in particular has been highlighted by a missile attack on Israel by Iran at the beginning of October.”
Israel's economy grew less than expected in the second quarter of this year. The country’s gross domestic product expanded by 1.2 per cent in the April-June period, the Central Bureau of Statistics said last month.
The conflicts Israel have been involved in reflect the risks to its growth, public finances and balance of payments, including direct security threats in case of retaliatory rocket attacks, the S&P analysts said.
“The negative outlook also reflects the risk of a more direct war with Iran, although this is not in our current base case,” they added.
S&P said its sees two near-term implications of the recent conflict escalation for Israel: increased risk from retaliatory rocket fire from Hezbollah, other Iran proxies in the region or Iran itself, and a broader economic impact of the recent escalation.
“Under these assumptions, we expect Israel's real GDP to stagnate in 2024. We anticipate that higher security threats will dampen consumer and investor confidence, while tourism, construction and agricultural sectors will remain affected.”
A wider ground operation in Lebanon requiring a call-up of reservists could also constrain economic recovery in the short term, they added.
S&P also projects that an increase in defence-related expenditure may result in a government deficit of 9 per cent of GDP for 2024, before slowing down to 6 per cent of GDP next year.
However, despite the risks, S&P's ratings on Israel remain supported by “several key strengths”, including the country's balance of payments and its “highly adaptable and diversified economy”, which has historically strong growth rates and rebounded quickly from crises.
Israel has “high per capita income levels, and we note that the economy's concentration on exports of high-tech services also provides for higher ability for some employees to work remotely, mitigating the impact of security disruptions on the domestic economy”, S&P said.
WHAT IS GRAPHENE?
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics.
UAE currency: the story behind the money in your pockets
UAE v Ireland
1st ODI, UAE win by 6 wickets
2nd ODI, January 12
3rd ODI, January 14
4th ODI, January 16
Specs%20
%3Cp%3E%3Cstrong%3EPower%20train%3A%20%3C%2Fstrong%3E4.0-litre%20twin-turbo%20V8%20and%20synchronous%20electric%20motor%3Cbr%3E%3Cstrong%3EMax%20power%3A%20%3C%2Fstrong%3E800hp%3Cbr%3E%3Cstrong%3EMax%20torque%3A%20%3C%2Fstrong%3E950Nm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3EEight-speed%20auto%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E25.7kWh%20lithium-ion%3Cbr%3E0-100km%2Fh%3A%203.4sec%3Cbr%3E0-200km%2Fh%3A%2011.4sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%20%3C%2Fstrong%3E312km%2Fh%3Cbr%3E%3Cstrong%3EMax%20electric-only%20range%3A%3C%2Fstrong%3E%2060km%20(claimed)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Q3%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1.2m%20(estimate)%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
The specs: 2019 Infiniti QX50
Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 268hp @ 5,600rpm
Torque: 380Nm @ 4,400rpm
Fuel economy: 6.7L / 100km (estimate)
more from Janine di Giovanni
The%20specs%3A%20Taycan%20Turbo%20GT
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Cricket World Cup League 2 Fixtures
Saturday March 5, UAE v Oman, ICC Academy (all matches start at 9.30am)
Sunday March 6, Oman v Namibia, ICC Academy
Tuesday March 8, UAE v Namibia, ICC Academy
Wednesday March 9, UAE v Oman, ICC Academy
Friday March 11, Oman v Namibia, Sharjah Cricket Stadium
Saturday March 12, UAE v Namibia, Sharjah Cricket Stadium
UAE squad
Ahmed Raza (captain), Chirag Suri, Muhammad Waseem, CP Rizwan, Vriitya Aravind, Asif Khan, Basil Hameed, Rohan Mustafa, Kashif Daud, Zahoor Khan, Junaid Siddique, Karthik Meiyappan, Akif Raja, Rahul Bhatia
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
RESULT
Deportivo La Coruna 2 Barcelona 4
Deportivo: Perez (39'), Colak (63')
Barcelona: Coutinho (6'), Messi (37', 81', 84')
