Israel's long-term foreign and local currency "A1" credit rating is under review for downgrade, the statement said, adding that Israel's credit profile has proven resilient to past terrorist attacks and military conflicts, but the severity of the current military conflict increases the likelihood that it will last longer and have a material credit impact.
The rating review will focus on the likely duration and scale of the conflict, the statement said, adding that the review period could be longer than three months.
FITCH HAD ALSO PLACED ON 'NEGATIVE WATCH'
International credit rating agency Fitch Ratings also announced earlier this week that it had placed Israel's "A+" credit rating on negative watch due to geopolitical risks.
The negative watch reflects the risk that the current conflict will expand to include large-scale military conflicts with multiple actors over a long period of time, the statement said, pointing out that other organizations and countries in the region may be involved in the conflict.
Fitch had warned that the escalation of the Israeli-Palestinian conflict to include other actors in the region could result in a downgrade.
Bad news for Israel: Under scrutiny!
In the statement made by Moody's, it was stated that the rating outlook was previously "stable" and that the review was initiated due to the "unexpected and violent" conflict between Israel and Palestine.
David Goodman
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23.10.2023 - 23:31
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