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Fitch keeps Israel 'A' credit rating with negative outlook; Air Canada suspends Israel/Dubai flights to September

·Tel Aviv, Israel

Fitch affirmed Israel's 'A' credit rating but kept negative outlook, citing 'continued rise in public debt' and 'war-related tail risks.' Fitch's baseline: 'the current war will likely greatly diminish Iran's threat to Israel.' Separately, Air Canada extended its suspension of all Ben Gurion and Dubai flights through September 8 — effective aviation shutdown for the region for at least six more months.

Fitch Ratings affirmed Israel's 'A' credit rating on 27 March 2026, maintaining a negative outlook. Fitch cited a 'continued rise in public debt' and 'war-related tail risks that could weaken growth prospects.' Fitch noted: 'Israel's recent and ongoing military operations have somewhat diminished geopolitical risks... our baseline assumes the current war will likely greatly diminish Iran's threat to Israel.' The negative outlook reflects a 'fractious domestic political environment that may hinder fiscal consolidation.' Fitch warned: 'A broadening of the conflict, including large-scale military operations in Lebanon... represents the main risk to our fiscal projections.' Separately, Air Canada extended its suspension of flights to/from Tel Aviv (Ben Gurion) and Dubai through September 8, effectively signaling that major international carriers expect the conflict to continue for at least six months.
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Actor responses

Israel Defense ForcesNEUTRALECONOMIC

Fitch: 'Israel's military operations have somewhat diminished geopolitical risks... baseline assumes war will likely greatly diminish Iran's threat to Israel.' Israel's A credit rating maintained despite war-related debt surge.

United StatesNEUTRALECONOMIC

Air Canada's extension of flight suspension to Israel and Dubai through September 8 signals that major international carriers are pricing in at least six more months of conflict, regardless of the April 6 diplomatic deadline.

Sources