For almost a year, Israel’s economy has been rated by Standard & Poor as “A+”.  “Israel’s fiscal consolidation is on track, economic growth is steady, and that the debt-to-GDP ratio has fallen.” So what?

I was reading an interview with Moritz Kramer, S&P’s Chief Sovereign Rating’s Officer. He made three very simple points.

First, of the 23 rankings that S&P provide, A+ is the fifth highest. That means that Israel’s credit rating is extremely strong and thus enables the country to raise money more efficiently on the international financial markets.

Second, compare this position to 2007, less than a decade ago. Then, Israel was bottom of the Mediterranean club. Today, the country’s ranking is second only to that of France.

Third, and possibly most important for Kramer, Israel moves ahead by learning from past mistakes. For example, Israel’s banks largely avoided the credit crunch crisis of 2008. They had been through a bad experience two decades previously and had installed better practices.

Where next? Simple. Do not surrender these achievements in to the hands of politicians and interest groups. Now there is an interesting challenge for the Prime Minister.