Moody’s Downgrades Israel Again as Economic Costs of War Mount

  • Two-notch downgrade leaves nation three steps above junk
  • Israel sees cost of conflicts reaching $66 billion by end-2025

The dockyards at Haifa Port beyond city buildings in Haifa, northern Israel.

Photographer: Kobi Wolf/Bloomberg
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Israel was downgraded for the second time this year by Moody’s Ratings as the economic costs mount from almost 12 months of fighting in Gaza and an worsening conflict with Hezbollah.

Moody’s cut Israel by two notches to Baa1 from A2, the ratings company said Bloomberg Terminallate on Friday, leaving the country three steps above non-investment grade. The outlook remains negative.