Zero Hedge | Feb. 10, 2024
For the first time in its history, the State of Israel has seen its credit rating downgraded, as Moody’s on Friday took the country’s rating down one notch to A2, and said the rating outlook going forward is negative.
The country’s ongoing war with Hamas and occupation of Gaza will “materially raise political risk for Israel as well as weaken its executive and legislative institutions and its fiscal strength, for the foreseeable future,” said Moody’s, which added that the conflict will create deficits over upcoming years that “will be significantly larger than expected before the conflict.”
The war, now in its fifth month, began on Oct. 7, when Hamas militants shocked Israel with an invasion from Gaza in which military raids and terrorist acts took the lives of 1,139 people, including 695 civilians. The death toll from the Israel Defense Force’s retaliation is now reportedly approaching 28,000.