ISRA - Moody's puts Israel's debt rating on review for downgrade
2023-10-20 06:48:39 ET
Ratings agency Moody's Investors Service has placed Israel's debt A1 long-term foreign-currency and local-currency issuer ratings on review for downgrade, on account of the ongoing Israel-Hamas war.
The agency's earlier outlook for Israel was stable. "Israel's credit profile has proven resilient to military conflict in the past," it said . "However, the severity of the current conflict raises the possibility of longer lasting and material credit impact."
Moody's said the review period may be longer than the typical three months. Note that Israel has never been downgraded by any major ratings agency (Moody's, Fitch and S&P Global) despite conflicts over the years.
Moody's highlighted governance issues in Israel, which were already a concern given its government's controversial efforts to weaken the judiciary's power .
"The formation of a unity government following the onset of military conflict will likely support greater domestic cohesion for the duration of conflict," said Moody's.
The move follows Fitch placing Israel's credit ratings on negative watch earlier this week.
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Moody's puts Israel's debt rating on review for downgrade