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

The first credit rating downgrade for Israel in decades comes as the ongoing war with Hamas strains the nation's economy and political stability.

Moody's has downgraded Israel's credit rating from A1 to A2, marking the first downgrade in about three decades.
The downgrade reflects concerns over the economic and political impact of the ongoing war with Hamas, including increased defense spending and lower tax revenues.
Israeli Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich have dismissed the downgrade as politically motivated.
The Bank of Israel estimates the conflict will cost the country approximately $69 billion between 2023 and 2025, amounting to 13% of the estimated GDP for 2024.
Moody's warns of a significant risk of a full-scale conflict with Hezbollah, which could further strain Israel's economy and security.