Moody's Downgrades Israel's Credit Rating Amid War and Economic Concerns

The credit agency cites the ongoing conflict with Hamas and government economic policies as key reasons for the downgrade.

Moody's downgraded Israel's credit rating from A1 to A2, citing the war with Hamas and the government's economic policies as key factors.
The downgrade reflects concerns over Israel's security, geopolitical risks, and the impact of the war on the economy and public finances.
Israeli officials, including Netanyahu's economic adviser, argue that the market's muted response to the downgrade shows confidence in Israel's economic resilience.
Experts and commentators stress the need for Israel to address Moody's concerns by implementing economic policy changes and structural reforms.
The credit rating downgrade is expected to increase Israel's borrowing costs, potentially leading to higher taxes and reduced public services.