Moody’s has announced that it has lowered Israel’s credit rating from A1 to A2 due to the recent conflict with Hamas. The credit rating agency believes that the war and its aftermath will significantly increase the political risk for Israel in the near future. In addition to this, Moody’s also cites the potential threat of an escalation of the situation between Israel and Hezbollah as a reason for lowering the country’s credit rating outlook to negative.
Moody’s decision to lower Israel’s credit rating reflects concerns about the impact of the recent conflict with Hamas and the potential for further escalation with Hezbollah. The credit rating agency believes that these events will increase political risk and weaken the country’s institutions. As a result, Moody’s has justified its decision by changing Israel’s credit rating outlook from stable to negative, indicating a higher level of risk for investors in the near future.
The conflict with Hamas is not the only factor contributing to Israel’s lower credit rating outlook. Moody’s also points to the threat of an escalation of the situation with Hezbollah as another reason for lowering its credit rating outlook. These factors have led Moody’s to downgrade Israel’s credit rating and issue a negative outlook, indicating that investors should exercise caution when investing in Israeli assets in the near future.