Global credit ratings agency Moody’s projected on Tuesday that Israel’s credit rating will remain at its current level through 2025. Israel’s rating stands at BAA1, the lowest in its history, with a negative outlook. While the firm acknowledged Israel’s strong economic resilience to shocks, it pointed to heightened investor uncertainty regarding economic growth due to the country’s “very high exposure to geopolitical risks.” Moody’s also highlighted that the nation’s “polarized political system” has contributed to the current rating. The agency further stated that an upgrade is unlikely in the near future, citing the ongoing Israel-Hamas war as a key factor. Related articles: Israel’s Credit Rating downgrade: Economic warfare post October 7 'Gaza ceasefire could positively impact Israel’s credit rating' 'Geopolitical risks in Israel have partially diminished' S&P Global downgrades Israel's long-term credit ratings In September of 2024, Moody's downgraded Israel's credit rating from A2 to Baa1 and maintained a negative outlook. Two months later, it issued an update on Israel’s credit rating, after a ceasefire agreement was reached with Hezbollah, saying that, while geopolitical risks "appear to have partially diminished," there were persistent domestic political risks.
