Moody’s Ratings (Moody’s) has today downgraded Government of Israel’s long-term local and foreign-currency issuer ratings to Baa1 from A2 – Moody’s report.

Due to Israel’s escalation in the region, Moody’s has downgraded the country’s credit rating by two notches to “Baa1” from “A2,” maintaining a negative outlook amid rising tensions with Lebanon. 
Moody’s stated, “The key driver for the downgrade is our view that geopolitical risk has intensified significantly further, to very high levels, with material negative consequences for creditworthiness in both the near and longer term.”
Although the rating remains three notches into investment grade, Moody’s cautioned that uncertainties regarding security and long-term economic growth prospects “are much higher than is typical at the Baa rating level.” A drop below this level would result in the loss of investment-grade status.
“The ratings would likely be downgraded further, potentially by multiple notches, if the current heightened tensions with Hezbollah turned into a full-scale conflict,” Moody’s added – QNN.