The ratings are reduced as a result of a downgrade review that started in October of last year. The agency cited elevated political risks that are expected to remain for the foreseeable future as justification for the downgrade.
“There is no agreement to fundamentally end the conflict [with Hamas], nor is there agreement on a longer-term plan that would fully restore and over time enhance Israel’s security,” said Moody’s.
Additionally, the agency altered Israel’s rating outlook to “negative,” noting the ongoing high probability of conflict escalation among other things.
Israel’s sovereign ratings were reduced for the first time.
source: ft.com
