The recent conflict with Hamas has led Moody’s to lower Israel’s credit rating from A1 to A2. The credit rating agency believes that the war and its aftermath will significantly increase the political risk for Israel in the near future, leading them to change the outlook to negative.
Moody’s also points to the potential threat of an escalation of the situation between Israel and Hezbollah as another reason for lowering Israel’s credit rating outlook. These factors have led the credit rating agency to justify their decision and issue a negative outlook for the near future.
The conflict with Hamas has raised concerns about the impact on Israel’s institutions and political stability, which has contributed to Moody’s decision to lower Israel’s credit rating. The credit rating agency believes that these events will weaken the country’s institutions and increase political risk, leading them to make this change in their assessment of Israel.