• Sat. Mar 2nd, 2024

Israel’s Credit Rating Lowered to A2 as Tensions with Hamas and Hezbollah Rise


Feb 11, 2024
Israel’s rating downgraded by Moody’s for the first time in history

Moody’s credit agency has lowered Israel’s credit rating from A1 to A2 for the first time, with a “negative” outlook, due to the ongoing military conflict with Hamas and concerns about a potential larger conflict against the Hezbollah militias in Lebanon. This historic downgrade is attributed to the instability caused by these conflicts and the risk of escalation on Israel’s northern border.

In response to the assessment from Moody’s, Israeli Prime Minister Benjamin Netanyahu downplayed the negative credit rating and attributed the decline to the current state of war with Hamas. He emphasized that Israel’s economy is strong and that this drop in rating is due to the chaos caused by the conflict with Hamas. Netanyahu assured that when the war is won, ratings will go up again, and that economic strength is not connected to this downgrade.

This lowered credit rating might result in increased interest rates or a weakened national currency. The conflict with Hamas and fears of a larger conflict with Hezbollah have contributed to this historic downgrade. Despite Prime Minister Netanyahu’s response conveying confidence in Israel’s ability to emerge successful from these challenges, there are concerns about its long-term effects on Israel’s economy and stability.

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