Finance
Finance Ministry officials to 'Post': Moody's rating drop was premature, a step too far
Ratings agency Moody’s “went one or two steps too far” and were “very conservative” in their downgrade of Israel’s rating late last month, senior officials within the Finance Ministry’s Accountant General Department told The Jerusalem Post.
“We respect Moody’s, and the government should listen carefully and address the relevant comments. However, our professional stance is that, at the very least, Moody’s has taken [it] one notch too far at this time,” they said.
The downgrade dropped Israel by two notches, from A2 to Baa1—the country’s lowest score ever—and maintained a negative outlook for its rating.
“A major part of what the credit rating should represent is […] the ability of the country to repay its foreign currency debt,” the officials explained, adding that Israel’s “ability to repay foreign currency is very strong.”
Israel has had a surplus of more than 5% in the current account for 20 years, the officials said, adding that this is “fairly structural,” as the country exports more than it imports typically.
They added that the Bank of Israel also holds “the highest ever reserve of foreign currency,” which is nearly four times as high as the external debt, showing Israel’s strong ability to repay foreign debt.
The officials said that senior economists believe that, in some sense, Moody’s treated a “worst-case scenario” as the “main-case scenario.”
This means that they made the assumption that “the country’s economic recovery will be very long and that the debt-to-GDP ratio will grow substantially.”
Officials believe scenario is ‘exaggerated’
While this scenario is legitimate, “we think it is exaggerated,” the officials told The Jerusalem Post, adding that they think it is premature to make the assumptions made in Moody’s base case.
“As long as there is a good and responsible budget here that is aimed at growth, and the security situation improves, we can expect a more rapid rebound in the economy.”
Tel Aviv University Prof. Dan Ben-David, who heads the socioeconomic research center Shoresh Institution, highlighted the uncertainty surrounding Israel’s economy despite the confidence projected by Finance Ministry officials.
“Just a glance at last week’s major revision by [Israel’s] Central Bureau of Statistics – its third downward revision of GDP – gives a pretty good idea about how little we actually know with regard to the actual severity of the situation, which is continuously being revised downward,” he said.
“We are in mid-October, and the government is only now beginning to contemplate the budget for next year while our finance minister is MIA. Given his comments and areas of focus, that is probably for the better, as incredulous as that might seem given the gravity of the moment we are in.”
Earlier this month, Bank of Israel Governor Professor Amir Yaron highlighted the importance Moody’s rating, which could impact Israel regardless of whether or not it was premature or exaggerated.
“It is important to pay attention and take the assessments of the rating agencies seriously, as they reflect the challenges and risks faced by the Israeli economy as the world sees it,” Yaron explained.
Written by Jitendra Parashar at The Motley Fool Canada
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AGF Management stock continues to reward shareholders
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TD Bank stock remains a dependable dividend giant
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Finance
Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’
El Paso Independent School District Chief Financial Officer Martha Aguirre, who served as interim superintendent last year, resigned this week as the district said it had discovered “key financial challenges.”
The district issued a news release late Thursday afternoon that lacked details but indicated that a recent review had raised questions about the district’s fund balances, a key indicator of financial health.
“Through this process, key financial challenges were identified that must be addressed prior to closing out the 2025-26 school year including a current budget shortfall that is being actively addressed ahead of the district’s final financial presentation to the Board of Trustees in June,” the news release said.
A CFO is charged with developing a school district’s budget and overseeing its finance department. The EPISD Board of Trustees must adopt a budget for the 2026-27 school year by the end of the fiscal year June 30. The operating budget for the current school year is $547 million.
EPISD Deputy Superintendent David Bates will oversee the budget while the district searches for an interim and permanent CFO, district officials said in a statement.
EPISD Board President Leah Hanany said trustees were notified about Aguirre’s resignation this week. She said the district plans to give the public more information on the current year’s budget during a board meeting later this month.
“The board was also notified of a potential budget shortfall for the 2025 budget, but we don’t have final numbers yet. My understanding is that we are still primed to pass a balanced budget for fiscal year 2026-27 in June,” Hanany said in a statement.
Aguirre could not be reached for comment. EPISD’s CFO makes $148,200 to $209,900 a year, according to the district’s administrative pay plan.
She served as EPISD’s interim superintendent from June to December 2025 after the district’s former superintendent, Diana Sayavedra, resigned under pressure from the board. She returned to her position as CFO when Brian Lusk was hired as EPISD’s new permanent superintendent.
Aguirre’s resignation comes amid an uncertain budget season after a state funding calculation error tied to school property tax breaks caused EPISD to lose out on $17 million in projected revenue. In late April, EPISD officials estimated it would cause the district’s spending to exceed its revenue next year by $10 million.
The district is also considering calling for a bond election in November to upgrade its aging campuses as part of the larger 2024 Destination District Redesign initiative to close schools and improve the ones that remain open.
El Paso Teachers’ Association President Norma De La Rosa said Aguirre’s departure was unexpected.
“We’re right in the middle of the committee meetings for a possible bond and getting ready to get that budget to the June board meeting for next school year. So, to say that I’m highly surprised is an understatement,” De La Rosa told El Paso Matters.
Aguirre started working with the district in 1996 as a general clerk, according to a video published by the district.
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