BRIEF-S&P Says Israel Long-Term Ratings Lowered To 'A' From 'A+' On Heightened Security Risk, Outlook Negative

Oct 1 (Reuters) - S&P:

* S&P SAYS ISRAEL LONG-TERM RATINGS LOWERED TO 'A' FROM 'A+' ON HEIGHTENED SECURITY RISK; OUTLOOK NEGATIVE

* S&P: INCREASING LIKELIHOOD THAT ISRAEL'S CONFLICT WITH HEZBOLLAH BECOMES MORE PROTRACTED AND INTENSIFIES, POSING SECURITY RISKS FOR ISRAEL

* S&P SAYS DOWNGRADE REFLECTS FALLOUT ON ISRAEL'S ECONOMY AND PUBLIC FINANCES FROM A WORSENING CONFLICT WITH HEZBOLLAH IN LEBANON

* S&P: NOW CONSIDER THAT MILITARY ACTIVITY IN GAZA & AN UPSURGE IN FIGHTING ACROSS ISRAEL'S NORTHERN BORDER COULD PERSIST INTO 2025

* S&P: EXPECT DELAYED ECONOMIC RECOVERY IN ISRAEL & HAVE REVISED DOWN OUR REAL GROWTH FORECASTS TO 0% IN 2024 AND 2.2% IN 2025

* S&P: NEGATIVE OUTLOOK ON ISRAEL ALSO REFLECTS RISK OF A MORE DIRECT WAR WITH IRAN

* S&P: ALSO PROJECT THAT ISRAEL WILL RUN WIDER FISCAL DEFICITS BOTH IN SHORT- AND MEDIUM-TERM AS DEFENSE-RELATED SPENDING INCREASES FURTHER

* S&P ON ISRAEL: ALSO FORECAST THAT CURRENT ESCALATION IN FIGHTING WILL UNDERPIN ENDURING INCREASE IN DEFENSE-RELATED EXPENDITURES Source text for Eikon: