WASHINGTON: The US ratings agency Moody’s downgraded Israel’s credit rating Friday due to the impact of its ongoing conflict with Hamas in Gaza, lowering it by one notch from A1 to A2.
In a statement, Moody’s said it had done so after assessing that “the ongoing military conflict with Hamas, its aftermath and wider consequences materially raise political risk for Israel as well as weaken its executive and legislative institutions and its fiscal strength, for the foreseeable future.”
The ratings agency also lowered its outlook for Israel’s debt to “negative” due to “the risk of an escalation” with the far more powerful Lebanese militant group Hezbollah that operates along its northern border.
Hamas’s unprecedented October 7 attack resulted in the deaths of about 1,160 people in Israel, mostly civilians, according to an AFP tally based on official Israeli figures.
In response, Israel launched air strikes and a ground offensive that have killed at least 27,947 people in Gaza, mostly women and children, according to the health ministry in the Hamas-run territory.
Following the attack, S&P Global Ratings lowered Israel’s credit outlook from stable to negative on risks that the Israel-Hamas conflict could broaden.
Fitch — which is the last of the big three US ratings agencies — placed Israel on negative watch over risks from the conflict.
“The weakened security environment implies higher social risk and indicates weaker executive and legislative institutions than Moody’s previously assessed,” the ratings agency said Friday in the statement explaining its decision.
“At the same time, Israel’s public finances are deteriorating and the previously projected downward trend in the public debt ratio has now reversed,” it continued.
“Moody’s expects that Israel’s debt burden will be materially higher than projected before the conflict,” it added.
![]()
Moody’s downgrades Israel’s credit rating due to Hamas conflict
Short Url
https://arab.news/wz6tx
Moody’s downgrades Israel’s credit rating due to Hamas conflict
Israeli airstrikes kill 9 in Gaza, including tent camp, Palestinian officials say
- An Israeli military official said Israel Defense Forces were striking Hamas ‘terrorists’
- Israel and Hamas have repeatedly accused each other of violating the ceasefire deal
CAIRO/JERUSALEM: At least nine Palestinians were killed in Israeli airstrikes in northern and southern Gaza Strip on Sunday, Palestinian civil defense and health officials said.
Medics said an Israeli airstrike on a tent encampment housing displaced families killed at least four people, while health officials said another strike killed five in Khan Younis in the south.
An Israeli military official said Israel Defense Forces were striking Hamas “terrorists” in response to “a violation (on Saturday) in Beit Hanoun where terrorists emerged from a tunnel east of the yellow line.”
The official called Sunday’s strikes “precise” and in line with international law, and said Hamas had committed more than six violations of an October ceasefire, including deploying east of the “Yellow Line” agreed under the ceasefire to demarcate Israeli- and Hamas-controlled areas.
Israel and Hamas have repeatedly accused each other of violating the ceasefire deal, a key element of US President Donald Trump’s plan to end the Gaza war.
On Saturday, the military said it had identified armed “terrorists” near IDF personnel operating in the northern Gaza Strip.
The IDF said it continued to destroy underground tunnels in the northern Gaza Strip in accordance with the agreement.
It said it observed several gunmen emerging from what it said was a tunnel and entering beneath the rubble of a building east of the Yellow Line.
The military said Air Force aircraft had attacked the building and eliminated two gunmen and that it was likely that additional militants were eliminated in the strike.
The Gaza health ministry said at least 600 Palestinians have been killed by Israeli fire since the Gaza deal began. Israel said four soldiers were killed by militants in Gaza over the same period.
Medics said an Israeli airstrike on a tent encampment housing displaced families killed at least four people, while health officials said another strike killed five in Khan Younis in the south.
An Israeli military official said Israel Defense Forces were striking Hamas “terrorists” in response to “a violation (on Saturday) in Beit Hanoun where terrorists emerged from a tunnel east of the yellow line.”
The official called Sunday’s strikes “precise” and in line with international law, and said Hamas had committed more than six violations of an October ceasefire, including deploying east of the “Yellow Line” agreed under the ceasefire to demarcate Israeli- and Hamas-controlled areas.
Israel and Hamas have repeatedly accused each other of violating the ceasefire deal, a key element of US President Donald Trump’s plan to end the Gaza war.
On Saturday, the military said it had identified armed “terrorists” near IDF personnel operating in the northern Gaza Strip.
The IDF said it continued to destroy underground tunnels in the northern Gaza Strip in accordance with the agreement.
It said it observed several gunmen emerging from what it said was a tunnel and entering beneath the rubble of a building east of the Yellow Line.
The military said Air Force aircraft had attacked the building and eliminated two gunmen and that it was likely that additional militants were eliminated in the strike.
The Gaza health ministry said at least 600 Palestinians have been killed by Israeli fire since the Gaza deal began. Israel said four soldiers were killed by militants in Gaza over the same period.
Latest updates
Recommended
© 2026 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.