Credit ratings agency Fitch said Monday that it downgraded Israel's credit rating to 'A' from 'A+', citing the ongoing war in the Gaza Strip.

"The downgrade to 'A' reflects the impact of the continuation of the war in Gaza, heightened geopolitical risks and military operations on multiple fronts," it said in a statement, Anadolu reported. 

Fitch also kept its rating outlook negative as the conflict in Gaza could last well into 2025 and there are risks of it broadening to other fronts, it said.

"In addition to human losses, it could result in significant additional military spending, destruction of infrastructure and more sustained damage to economic activity and investment, leading to a further deterioration of Israel's credit metrics," the rating agency added.