Israel Hit With First Ever Downgrade as Moody’s Cites War Impact
- Conflict weakens fiscal outlook, raises debt burden: Moody’s
- Netanyahu says rating decision entirely due to Hamas war
Israeli forces travel towards Gaza. The war against Hamas that erupted more than four months ago is stretching public finances by pushing the budget deep into the red.
Photographer: Kobi Wolf/BloombergThis article is for subscribers only.
Israel received its first-ever sovereign downgrade as Moody’s Investors Service lowered its credit rating, citing the impact of the ongoing military conflict with Hamas on its finances.
The nation was cut by one notch to A2, the sixth-highest investment grade and on par with Poland and Chile. Moody’s changed the outlook to negative, concluding a review that it started in October.