Moody’s: The Israeli economy is at risk and raising the classification “excluded” due to the war – the seventh day

Moody’s credit rating agency today told investors that the Israeli economy was at risk due to the internal policy and the security situation.

The newspaper “Yediot Aharonot”, which reported the news that the agency did not change its credit rating, but it started discussions with officials of the Israeli Finance Ministry before making a decision.

“Israeli national institutions are still strong, but they have weakened in recent years,” Moody’s wrote.

The current credit rating of Israel is the BAA1, which is the lowest in its history ever, heading towards negativity.

The agency noted that Israel has strong economic flexibility in the face of shocks, but that investors are not certain of economic growth higher than usual due to “very great exposure to geopolitical risks” facing the country.

Moody’s also indicated that “political polarization” affected the classification.

She explained that raising the credit rating is unlikely in the foreseeable future due to the continuation of the war between Israel and Hamas.

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