Moody's credit rating agency on Friday downgraded Israel's credit rating by two levels, from A2 to Baa1, with a negative outlook.
The agency wrote that it does not foresee a rapid recovery for the Israeli economy, as was the case after previous conflicts. It also pointed to a decline in the quality of the institutions and government in Israel which, it said, were not effective enough in preventing the downgrade.
Israel’s Accountant General, Yali Rothenberg, said in response, "Moody's decision is excessive and unjustified. The intensity of the rating action taken does not match the fiscal and macroeconomic data of the Israeli economy.”
“It is clear that the war on the various fronts is taking a toll on the Israeli economy, but there is no justification for the rating company's decision," he added.
In May, Moody's reaffirmed Israel's credit rating at level A2, with a negative outlook.
The reaffirmation of Israel’s rating reflected the agency’s position that the current rating adequately reflects the increased geopolitical risks to which the country is exposed.
In February, Moody’s downgraded Israel’s credit rating from A1 to A2 due to the war with Hamas. It was the first such downgrade in Israel's history.
(Israel National News' North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)