Moody’s has made the decision to lower Israel’s credit rating from A1 to A2 due to 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 the decision to lower Israel’s credit rating and change the outlook to negative.
Moody’s also points to the threat of an escalation of the situation with Hezbollah as another reason for lowering Israel’s credit rating outlook. These factors have led Moody’s to lower Israel’s credit rating and issue a negative outlook for the near future.
The recent conflict with Hamas has raised concerns about Israel’s political stability, which has led Moody’s to lower its credit rating from A1 to A2. The credit rating agency believes that this conflict, along with other factors such as tensions with Iran, could lead to an increase in political risk for Israel in the near future. Additionally, Moody’s is concerned about potential retaliation by Hamas against Israeli targets, which could further destabilize the region and increase political risks for Israel.
Furthermore, Moody’s also pointed out that there is a possibility of an escalation of tensions between Israel and Hezbollah, which would further destabilize the region and increase political risks for Israel. This has led Moody’s to revise its outlook on Israel’s future economic growth prospects from stable to negative.
Overall, Moody’s decision reflects concerns about increased political risk in light of recent conflicts and tensions in the region. The agency believes that these events will weaken institutions and negatively impact economic growth prospects in Israel in the near future.