The Moody’s International rating agency did not publish a new message on the sovereign credit rating of Israel, actually leaving it at the BAA1 level with a negative forecast (2 steps below other agencies), but without formal confirmation.
The agency was limited to the publication of a half -year review, in which it noted that “the current credit rating of Israel reflects very high political risks that weakened economic and fiscal stability.”
The agency analysts clarify that a change in a negative forecast is possible with the “obvious probability of prolonged“ cooling ”of military conflicts, which will allow state institutions to formulate a policy that supports the restoration of the economy.”
On the other hand, “a new outbreak of large -scale conflict with a real risk of damage to Israeli economics and national infrastructure or a significant deterioration in Israeli relations with key allies, including the United States,” can lead to a new decrease in Israel’s credit rating.