Moody's warns Israeli economy weakened by political risks, regional threats
Despite the budget approval and fiscal adjustments, the country's credit rating remained at its lowest level so far, with a negative forecast • Moody's stressed this is not a rating action
The credit rating company Moody's published a periodic review of Israel's credit rating on Tuesday, leaving it at the lowest level Baa1 so far, with a negative forecast.
This is in spite of the approval of the budget earlier in the day and fiscal adjustments. However, Moody's emphasized that the review does not include a rating action and does not indicate a future action.
This comes amid protest and turmoil over the passing of the 2025 budget law, which was approved in its second and third readings.
Moody's forecast was made despite noting that Israel's economy was surprisingly resilient amid the ongoing war. The "very high exposure to geopolitical risks," as well as political and social turmoil, however, kept the rating at its lowest ever.