Moody's cuts hit the banking sector in Israel and expectations for more. Israel is still exposed to the negative economic repercussions of its war on Gaza.
Moody's downgraded the long- and short-term deposit ratings of the five largest banks in Israel: Leumi, Hapoalim, Discount, Mizrahi-Tefahot and First International Bank of Israel. Downgrading the rating means that investors may become more cautious in approaching Israeli debt instruments, and may apply higher interest rates.