Moody’s downgrades Israel’s debt rating

Moody’s has downgraded Israel’s debt rating from A1 to A2 due to the economic impact of its conflict with Hamas. The credit rating business listed the increased political risk, weakened institutions, and fiscal strain as key factors. Despite remaining investment-grade, the downgrade will raise borrowing costs for Israel. Bank of Israel Governor Amir Yaron meanwhile says the country’s economy is strong and will recover from the impact of the war.