Moody's downgrades ratings of 5 Israeli banks

Moody's has conducted a rating assessment for Israeli banks today, following its downgrade of Israel's sovereign credit rating last week. In a statement from the credit rating agency, it was announced that the long-term and short-term deposit ratings of five Israeli banks have been downgraded, and that their rating outlooks are negative.

The statement listed the banks whose ratings were downgraded as Bank Leumi Le-Israel, Bank Hapoalim, Mizrahi Tefahot Bank, Israel Discount Bank, and First International Bank of Israel.

The statement noted that the rating downgrade is a result of the review initiated by Moody's on October 24, 2023, and emphasized that an escalation of the ongoing conflict could lead to the banks being affected more severely than currently assumed.

The statement further expressed that the social risks for the banks have increased due to military conflicts and a weakening security environment, which is a factor contributing to the negative outlook.

News Source: 12punto