Moody’s downgrades Israel’s credit rating due to Hamas conflict

S&P Global Ratings and Fitch have also expressed concerns about the Israel-Hamas conflict and its impact on Israel's credit outlook.

AFP
Updated10 Feb 2024, 06:38 AM IST
A picture taken from a position in southern Israel along the border with the Gaza Strip shows an Israeli tank rolling
A picture taken from a position in southern Israel along the border with the Gaza Strip shows an Israeli tank rolling(Photo by Jack Guez / AFP)

The US ratings agency Moody's downgraded Israel's credit rating Friday due to the impact of its ongoing conflict with Hamas in Gaza, lowering it by one notch from A1 to A2.

In a statement, Moody's said it had done so after assessing that "the ongoing military conflict with Hamas, its aftermath and wider consequences materially raise the political risk for Israel as well as weaken its executive and legislative institutions and its fiscal strength, for the foreseeable future."

The ratings agency also lowered its outlook for Israel's debt to "negative" due to "the risk of an escalation" with the far more powerful Lebanese militant group Hezbollah that operates along its northern border.

Also Read | Paytm fiasco: One97 Communication forms advisory panel headed by former SEBI chairman M Damodaran

Hamas's unprecedented October 7 attack resulted in the deaths of about 1,160 people in Israel, mostly civilians, according to an AFP tally based on official Israeli figures.

In response, Israel launched air strikes and a ground offensive that have killed at least 27,947 people in Gaza, mostly women and children, according to the health ministry in the Hamas-run territory.

Following the attack, S&P Global Ratings lowered Israel's credit outlook from stable to negative on risks that the Israel-Hamas conflict could broaden.

Fitch – which is the last of the big three US ratings agencies – placed Israel on negative watch over risks from the conflict.

Also Read | Insurance companies under IT scanner, likely to receive tax notices worth 25,000 crore: Report

"The weakened security environment implies higher social risk and indicates weaker executive and legislative institutions than Moody's previously assessed," the ratings agency said Friday in the statement explaining its decision.

"At the same time, Israel's public finances are deteriorating and the previously projected downward trend in the public debt ratio has now reversed," it continued.

"Moody's expects that Israel's debt burden will be materially higher than projected before the conflict," it added.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:10 Feb 2024, 06:38 AM IST
Business NewsEconomyMoody’s downgrades Israel’s credit rating due to Hamas conflict

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    152.30
    03:58 PM | 5 NOV 2024
    5.35 (3.64%)

    Bharat Electronics share price

    286.15
    03:59 PM | 5 NOV 2024
    2.1 (0.74%)

    Bank Of Baroda share price

    257.80
    03:59 PM | 5 NOV 2024
    5.05 (2%)

    State Bank Of India share price

    849.20
    03:59 PM | 5 NOV 2024
    19.35 (2.33%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Deepak Fertilisers & Petrochemicals Corporation share price

    1,320.80
    03:53 PM | 5 NOV 2024
    44.1 (3.45%)

    National Aluminium Company share price

    235.00
    03:56 PM | 5 NOV 2024
    4.2 (1.82%)

    Gillette India share price

    10,519.05
    03:29 PM | 5 NOV 2024
    116.1 (1.12%)

    Suven Pharmaceuticals share price

    1,332.50
    03:29 PM | 5 NOV 2024
    12.85 (0.97%)
    More from 52 Week High

    Rainbow Childrens Medicare share price

    1,548.10
    03:58 PM | 5 NOV 2024
    -82.6 (-5.07%)

    Torrent Power share price

    1,708.00
    03:29 PM | 5 NOV 2024
    -88.75 (-4.94%)

    PB Fintech share price

    1,640.20
    03:57 PM | 5 NOV 2024
    -72.55 (-4.24%)

    Tube Investments Of India share price

    4,180.70
    03:58 PM | 5 NOV 2024
    -179.4 (-4.11%)
    More from Top Losers

    HFCL share price

    127.85
    03:47 PM | 5 NOV 2024
    8.5 (7.12%)

    Jindal Saw share price

    326.10
    03:29 PM | 5 NOV 2024
    16.15 (5.21%)

    Adani Energy Solutions share price

    1,014.65
    03:54 PM | 5 NOV 2024
    49.25 (5.1%)

    Oil India share price

    495.45
    03:54 PM | 5 NOV 2024
    23 (4.87%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,255.00-160.00
      Chennai
      80,261.00-160.00
      Delhi
      80,413.00-160.00
      Kolkata
      80,265.00-160.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L-0.23
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts