Moody's credit ratings agency on Thursday placed Israel's A1 ratings on review for a possible downgrade.

"This review has been triggered by the unexpected and violent conflict between Israel and Hamas, in response to a large-scale, multipronged attack by Hamas," the agency said.

Moody’s added that, while Israel's credit profile has "proven resilient" to terror attacks and conflicts in the past, the severity of the current conflict "raises the possibility of longer lasting and material credit impact".

The decision by Moody’s comes two days after the Fitch credit rating agency took a similar step.