S&P Global Ratings downgraded Israel's sovereign credit rating from AA- to A+.

Downgrade attributed to escalating Middle East tensions, particularly with Iran, Hamas, and Hezbollah.

Agency cited risk of wider regional conflict potentially leading to higher deficit and government debt.

Recent suspected drone attack at an Iranian air base and nuclear site increased threat of military escalation.

Israel's economy still possesses strong fundamentals despite downgrade.

Israeli shekel dropped 0.2% against the US dollar after downgrade and reports of strike on Iran.

S&P will conduct another ratings review for Israel on May 10.