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. The rating downgrade could extend beyond banks to include government companies such as Israel Electric. The decision to downgrade Israel's rating came in light of the war it has been waging against the Gaza Strip since October 7, 2023, which led it to appear before the International Court of Justice on charges of "genocide"