Moody's has downgraded Israel's credit rating from "A2" to "Baa1" and maintained a negative outlook, citing escalating conflicts with Hezbollah in Lebanon.
The downgrade is primarily due to significantly increased geopolitical risks which are now at very high levels, impacting Israel's short-term and long-term creditworthiness. Moody's has warned that the uncertainty regarding Israel's security and long-term economic growth prospects is much higher than typical for a Baa rating. Falling below this level could result in Israel losing its investment-grade rating.
