Overview

• Moody's downgrades Israel's credit rating from Aaa to A2, citing the war with Hamas and potential broader implications.
• Israeli stock market experiences moderate declines following the downgrade, but investors remain relatively unfazed.
• Israel plans to increase bond issuance, including foreign-currency bonds, to finance the war against Hamas and cover budget deficits.
• The 2024 budget anticipates raising more debt than any year except 2020, with a projected fiscal deficit of 6.6% of GDP.
• Despite economic pressures, Israeli Prime Minister Benjamin Netanyahu asserts the economy's strength and anticipates a rating recovery post-war.