Standard & Poor’s downgrades Israel’s U.S. loan guarantees.
Standard & Poor’s said ratings for the loan guarantees Israel obtains from the United States dropped commensurately with its downgrading of the U.S. credit rating.
The USD 6 billion Israel receives in guarantees dropped from its highest rating of AAA to AA+.Unaffected was S&P’s overall rating for Israel, which remained at A/A-1, a level reporting a “strong” capacity to meet financial commitments.
Another major credit rater, Moody’s, had said before the debt ceiling matter was resolved that Israel might see its loan guarantees downgraded in the event that the United States was downgraded. Moody’s, however, did not downgrade its U.S. rating.
On Sunday, the Tel Aviv Stock Market experienced its largest one-day loss in nearly three years in reaction to the downgrade of the U.S. credit rating. The share market in Tel Aviv fell seven per cent.
A word from Uncle Sam is not a bona fide guaranty anymore.
Israel has placed all its egg in one basket. That is in the continued support from the ruling party in the US. The downgrade of the US credit rating, will effect Israel more than many other nations.
The US is the main export market for Israel. 32,5 per cent of products exported from Israel, are shipped to the US. If the US goes bust, so do the export driven economy of the Jewish state.
For Israeli’s, there have been many wake up call. Many Prophets have warned the Jews, not to put their trust in Washington, but to rather turn to the Messiah sent to all of us by God of Israel.
Israel will surely not be saved by men. Neither by money, nor by arms. Israel will be saved by the Spirit of God, purely by grace. Amen.
Written by Ivar