Moody’s has recently announced a downgrade in Israel’s credit rating outlook to a negative state.
Moody’s, a globally renowned credit rating agency, has made it public that it is taking the decision to downgrade Israel’s credit rating from A1 to A2. The reason that Moody’s has cited for this course of action is the ongoing war between Israel and Hamas, an extremist organization.
The credit rating agency has expanded on its decision by stating that the war, its aftermath, and its broader implications would significantly heighten the political risk for Israel in the near future. Furthermore, these conditions are predicted to weaken the country’s executive and legislative institutions, among other potential impacts.
In addition to downgrading the credit rating, Moody’s has also lessened Israel’s credit rating outlook to a negative state. The credit rating agency, in providing a rationale for its decision, has pointed to the looming threat of an exacerbation of the situation between Israel and the Lebanese extremist organization known as Hezbollah.
