Israel's credit rating downgraded because of war with Hamas

Moody’s Investors Service has downgraded Israel’s debt rating from A1 to A2, citing the economic consequences of the country’s ongoing conflict with Hamas. The agency believes that the military conflict has significantly increased political risks for Israel and weakened its institutions and fiscal strength. This downgrade may result in higher borrowing costs for Israel in the future. Moody’s also highlighted the potential for an escalation of the conflict, including the involvement of Hezbollah, which poses a substantial risk to Israel’s territory.