International credit rating agency Moody's on Friday reaffirmed Israel's credit rating at level A2, with a negative outlook.
The reaffirmation of Israel’s rating reflects the agency’s position that the current rating adequately reflects the increased geopolitical risks to which the country is exposed.
The agency assumes the continuation of the war between Israel and Hamas, as well as the continuation of the conflict between Israel and Iran and its proxies, with an emphasis on Hezbollah.
Specifically, Moody’s said there remains a non-negligible risk of escalation to the point of a military confrontation between Israel and Hezbollah or directly with Iran.
In February, Moody’s downgraded Israel’s credit rating from A1 to A2 due to the war with Hamas. It was the first such downgrade in Israel's history.
In April, the Fitch credit rating agency reaffirmed Israel's credit rating at an A+ level, the removal of the "Negative Watch" and an update of the rating outlook from "Stable" to "Negative."
Later that month, ratings agency S&P Global cut Israel's long-term ratings to A-plus from AA-minus following Iran’s drone and missile attack on Israel and amidst the already elevated geopolitical risks for Israel.
(Israel National News' North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)