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Moody's lowered Israel's credit rating for the first time in history

The international rating agency Moody's for the first time in history lowered Israel's credit rating from A1 to A2. This is stated in a message from Moody's.

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“Moody's has downgraded the issuer ratings of the Israeli government in foreign and local currencies to A2 from A1,” the agency said.

< h3>Main reason

It is noted that the main reason for the downgrade of Israel's rating to A2 is Moody's assessment that the current military conflict with Hamas and its consequences significantly increase political risks for Israel, and also weaken its executive and legislative institutions and its fiscal strength in the near future.

It is also indicated that although the fighting in the Gaza Strip may decrease in intensity or stop, there is no agreement yet on a final cessation of hostilities and no agreement about a long-term plan that would fully restore and ultimately strengthen Israel's security.

According to Haaretz, Moody's lowered the country's credit rating for the first time in Israel's history.

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