Moody’s lowered Israel’s credit rating for the first time in the country’s history

Moody’s lowered Israel’s credit rating for the first time in the country’s history

International rating agency Moody’s has decided to lower Israel’s credit rating by one level, from A1 to A2. The reason for this was the expected economic consequences of the war with the Palestinian group Hamas, recognized as a terrorist in the United States and the European Union.

The downgrade of Israel’s credit rating occurred for the first time in the entire history of the state’s existence.

In addition, Moody’s published negative rating forecast, predicting another possible downgrade in the future. In the explanation, the agency indicated that against the background of the war in the Gaza Strip and reports of the possible opening of a front with Lebanon in the north of Israel, the economic situation in the country may worsen.

Prime Minister of Israel Benjamin Netanyahu, commenting on Moody’s decision, said that the downgrade is not related to the state of the economy, but to the fact that the country is in a state of war.

Yesterday it became known that the Israeli military received an order from Netanyahu to develop a plan to evacuate civilians from the city of Rafah to the south of the Gaza Strip, to the border with Egypt, for the subsequent cleansing of the region from the jihadists of Hamas.

According to various estimates, there are now between one and 1.4 million Palestinians in the Rafah area in the southern Gaza Strip. These are both residents of the region and those who evacuated from the northern sector after the start of Israel’s operation against Hamas.

The White House called on the Netanyahu government to refrain from the military campaign in Rafah and take care of the safety of peaceful Palestinians. US President Joe Biden characterized The IDF’s retaliatory actions in Gaza are “excessive”.

In turn, Reuters sources reportthat Egypt, which previously refused to accept Palestinian refugees, on the eve of a possible Israeli operation sent approximately 40 tanks and armored personnel carriers to the northeast of Sinai, to the border with the Gaza Strip.

The Israeli authorities have repeatedly declared that they will wage war until the complete destruction of the Hamas group and the return from Gaza of all Israeli hostages captured by jihadists during the attack on the south of Israel on October 7.

Sources Axios reportthat the director of the CIA, William Burns, will go to Cairo next week to prepare new negotiations between Israel and Hamas on the release of hostages and a ceasefire.

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