The US Credit Rating agency Moody’s Investors Service warned it could downgrade Israel’s rating as the Hamas war rages. The downgrade of credit rating could make it more expensive for Israel to borrow amid the war.
At present, Moody’s has given Israel an A1 credit rating. However, the US rating agency said that the severy of conflict, “raises the possibility of longer lasting and material credit impact”.
Moody’s on Friday announced that it was putting a number of the Israeli government’s credit ratings on review for a downgrade, including its long-term foreign-currency and local-currency ratings, because of the war.
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“Israel’s credit profile has proven resilient to terrorist attacks and military conflict in the past,” it said.
“However, the severity of the current military conflict raises the possibility of longer lasting and material credit impact,” it added.
Moody’s statement has come after Fitch Ratings said it was placing Israel’s A foreign- and local-currency issuer default ratings on “Ratings Watch Negative.”
Also read: US President Biden compares Hamas to Vladimir Putin, seeks funding for Israel, Ukraine
In its announcement, Fitch cited “the heightened risk of a widening of Israel’s current conflict to include large-scale military confrontations with multiple actors, over a sustained period of time.”
Meanwhile, US President Joe Biden told its citizens that the country must deepen its support of Ukraine and Israel in the middle of two vastly different, unpredictable, and bloody wars.
He said that he would send Congress an “urgent budget request to fund America’s national security” and “critical partners including Israel and Ukraine” on Friday.
The ask will include $60 billion in funding for Ukraine over the next year, as well as $14 billion to boost Israeli defenses.
More than 1,400 people in Israel have been killed, mostly civilians slain during Hamas’ deadly incursion. Roughly 200 others were abducted. The Israeli military said Thursday it had notified the families of 203 captives.
More than 74 Palestinians have been killed in the West Bank since the war started. And over 1 million Palestinians, about half of Gaza’s population, have fled their homes in the north since Israel told them to evacuate.
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Updated: 20 Oct 2023, 09:22 AM IST
The post Israel-Hamas war: Moody’s may downgrade Israeli govt’s credit rating first appeared on .
