JERUSALEM, Sept. 27 (Xinhua) -- Moody's Ratings announced on Friday a downgrade of the Israeli government's credit ratings for the second time in 2024, citing intensified geopolitical risks and a weaker economic outlook.
The agency lowered Israel's credit ratings by two levels, from A2 to Baa1, with a "negative" outlook. This marks the second downgrade this year, following an initial reduction in February when the rating was cut from A1 to A2.
Analysts at Moody's indicated that the primary factor driving this downgrade is their assessment that geopolitical risks have escalated to very high levels, with significant negative implications for Israel's creditworthiness in both the near and long term.
They expressed concerns that Israel's economy is likely to be more durably weakened by ongoing military conflicts than previously anticipated.
Furthermore, analysts noted that the substantial rise in geopolitical risk reflects a decline in the quality of Israel's institutions and governance, which have failed to adequately address factors detrimental to the country's credit metrics.
