International credit rating agency Moody's has released a new economic outlook for Israel amidst the ongoing war with Hamas in Gaza. Israel's credit rating has been downgraded from A1 to A2. The outlook for Israel's debt is lowered to "negative" due to "the risk of an escalation" with the Lebanese terror group Hezbollah in the north.
Moody's report expresses concern about the consequences of the war in Gaza, military escalation on the Lebanese-Israeli border, and the instability of Israel's current government.
Prime Minister Benjamin Netanyahu commented on this report. "The Israeli economy is strong. The rating downgrade is not connected to the economy; it is entirely due to the fact that we are in a state of war. The rating will go back up the moment we win the war — and we will win the war," he said.
