Moody's downgrades Israel's credit rating
International credit rating agency Moody's has downgraded Israel's credit rating from "A1" to "A2" and changed its outlook to negative.
AA
In a statement released by Moody's, it was announced that Israel's credit rating and outlook have been revised.
The statement reported that Israel's foreign and local currency credit ratings were downgraded from "A1" to "A2," and the credit rating outlook was changed to negative.
In its statement, the credit rating agency cited the ongoing military conflict and its broader consequences as the primary reason for the downgrade, noting that this situation increases the risk of weakening Israel's executive and legislative institutions as well as its fiscal strength.
CREDIT RATING HAD BEEN UNDER REVIEW
The statement indicated that Israel's public finances have deteriorated and the previously projected downward trend in the public debt ratio has reversed, adding that the country's debt burden is expected to be higher than what was anticipated before the conflict.
On October 19, 2023, Moody's had placed Israel's "A1" credit rating under review for a possible downgrade.