Moody's Downgrades Israel's Credit Rating Amid Escalating Conflict

The downgrade to 'Baa1' reflects heightened geopolitical risks and fiscal uncertainties due to intensified fighting with Hezbollah.

Moody's downgraded Israel's credit rating two notches to 'Baa1' from 'A2' with a negative outlook.
The downgrade is attributed to significant escalation in the conflict with Hezbollah, impacting Israel's creditworthiness.
Moody's warned that further downgrades could occur if the conflict escalates to a full-scale war.
A lower credit rating could increase Israel's debt servicing costs and pressure bond prices.
Fitch had previously downgraded Israel's rating to 'A' from 'A-plus' last month, also maintaining a negative outlook.