Standard & Poor's has downgraded Israel's credit rating due to intensifying fighting with the Hezbollah terror group and the potential for a delayed economic recovery. S&P cited risks of further escalation in the fighting with Hezbollah in Lebanon and the risk of a 'more direct war with Iran.' The rating agency cut Israel's rating to 'A' from 'A+' and maintained a negative outlook. S&P warned that higher security threats will dampen consumer and investor confidence, while tourism, construction, and agricultural sectors will remain affected. The downgrade comes hours after Iran fired ballistic missiles at Israel, and Prime Minister Benjamin Netanyahu warned Tehran that it will pay for its actions.