Investment bank Salomon, smith Barney sees Israel credit rating improving.

The American investment Bank Salomon, Smith Barney reported that Israel's credit rating on international markets does not fully reflect the country's developed economy. They rate Israel's credentials comparable to small double "A" rated European countries. The reasons for their opinion are based in the shrinking budget deficit, declining inflation, decreasing government debt as well as the implementation of significant structural reforms.

Two major challenges that Salomon says Israel must overcome a