Occupied Quds - Saba: Moody's has downgraded the credit rating of the Zionist entity by two degrees, and maintained its negative outlook for the rating due to ‘geopolitical risks’ after the expansion of the Zionist aggression on Lebanon during the past days, and the painful blows the enemy is receiving from the axis of resistance.
The agency decided to lower the rating from A2 to Baa1, the second downgrade of Israel's rating this year.
Moody's said in a statement: ‘The main driver behind the downgrade is our belief that geopolitical risks have significantly worsened to very high levels, which portends negative material consequences for Israel's creditworthiness in the short and long term.
In the longer term, the agency expects Israel's economy to weaken as a result of the ongoing military conflict, beyond previous expectations.
With increased security risks, the agency no longer expects a rapid and strong economic recovery as was the case after previous wars.
The Accountant General of the Zionist Ministry of Finance commented on the decision. He said: ‘It is clear that the war on various fronts is having its negative effects and damaging the Israeli economy.
The ‘Israel Today’ newspaper described Moody's decision as ‘an economic blow to Israel.
Moody's had downgraded Israel's credit rating last February, attributing this to the war on the Gaza Strip and its repercussions, and the agency predicted that Israel's debt burden would rise from its pre-war projections for the Gaza Strip.
Earlier, Fitch also downgraded Israel's credit rating and maintained its negative outlook on the rating.
| more of (Economy) |