Israel’s finance minister slams Moody’s for credit rating downgrade frenzy.

February 12, 2024
1 min read

TLDR: Israel’s finance minister, Bezalel Smotrich, has criticized Moody’s decision to downgrade Israel’s credit rating, calling it a “political manifesto” and stating that it “did not include serious economic claims.” Moody’s downgraded Israel’s credit rating from A1 to A2, citing concerns about the ongoing war in Gaza and the potential for war with Hezbollah in the north. Smotrich argues that the decision reflects a lack of confidence in Israel’s security and national strength. Israeli officials fear that the downgrade could lead other rating agencies to also downgrade Israel’s outlook, making it harder for the government to raise money through bond sales. However, some experts believe that the impact will be minimal if the war does not last long. Israel’s economy was already struggling before the war, with concerns about governance, rising inflation, and a slowdown in tech investments. Moody’s also raised concerns about Prime Minister Benjamin Netanyahu’s proposed judicial overhaul, which could weaken the country’s investment climate. The report did, however, praise the “strong checks and balances” that led to the shelving of the judicial overhaul.

Latest from Blog

Go toTop