Global ratings agency Fitch on Friday reaffirmed Israel's "A" credit rating, saying recent military operations will likely sharply reduce Iran's threat to the country. However, it kept a negative outlook, warning that rising public debt and prolonged military activity could derail growth and efforts to reduce the fiscal deficit. U.S.–Israeli strikes on Iran have added to concerns over Israel's deficit, coming shortly after the country reached a ceasefire agreement with Gaza - a development that had prompted S&P and Moody's to upgrade their outlooks on Israel to stable. "The wars since October 2023 are likely to have a prolonged impact on Israel's potential growth, which is also hampered by long-standing structural challenges," Fitch said, adding that the impact of oil price shocks on Israel's inflation is limited.