S&P Global Ratings on Aug. 4 revised the outlook on the State of Israel to positive from stable, citing a potential for stronger-than-anticipated general government fiscal performance in the next two years.

Despite existing spending pressures, Israel's economic and balance-of-payments dynamics will stay strong while security risks remain contained, S&P said.

Israel's GDP figure has risen $100 billion from 2010, it has a surplus account balance and historic unemployment rate lows. Further progress in lowering public debt as a percentage of GDP could result in an upward revision to its ratings, the agency said, adding that geopolitical risks remained.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.