Moody's downgrades Israel's credit rating, may further downgrade

On September 28, Jinshi Data News, due to the escalation of conflicts between Israel and Hezbollah in the region, Moody’s downgraded Israel’s credit rating from “A2” to “Baa1” by two levels on Friday and maintained a negative outlook. Moody’s said: “The main reason for the downgrade is that we believe that geopolitical risks have further significantly intensified to a very high level, which will have a substantial negative impact on Israel’s recent and long-term creditworthiness.” Moody’s warned that the uncertainty about Israel’s security and long-term economic prospects is “far higher than the typical level of Baa ratings”, and falling below this level means that Israel will lose its investment-grade rating. Moody’s said: “If the current tension with Hezbollah escalates into a full-scale conflict, Israel’s rating may be further downgraded, possibly by multiple levels.”