Continued catastrophic repercussions for the Israeli economy

MOODY’S credit rating agency announced that it has lowered the ratings of five Israeli banks, just days after it announced it had lowered the rating of the occupation entity with a negative outlook.

Follow-ups – Al-Khabar Al-Yemeni:

In a statement released today, Wednesday, the agency stated that it has lowered the ratings of Hapoalim, Leumi, Mizrahi Tefahot, Discount, and Al-Dewaliah by one notch from A2 to A3.

According to today’s decision, “the long-term deposit ratings of the banks will be lowered, with negative expectations similar to those for the Israeli economy’s rating.”

“If the war on Gaza escalates, the damage inflicted on the banks will be more severe than it appears today,” according to the Hebrew website “Calcalist,” which specializes in the Israeli economy.

Because the banks are considered a sector that would receive financial assistance from the state in case of difficulties, the banks’ ratings are influenced by the country’s sovereign rating.

The sovereign credit rating usually reflects the country’s ability to provide such assistance, so its decline also affects the ratings of banks that are supposed to receive help from it in times of trouble.

On Friday, MOODY’S stated that it “lowered the foreign currency and local currency issuer ratings of the Israeli government to A2 from A1, as well as lowered the foreign currency and local currency unsecured ratings of Israel to A2 from A1, amid negative outlooks.”

The decision to lower the rating of the occupation entity, the first in over 50 years, comes in response to its aggression on the Gaza Strip, which led to its appearance before the International Court of Justice on charges of “genocide,” in addition to tensions in the north with Hezbollah and operations against it in the Red Sea.

Since the 7th of October, the Israeli occupation army has continued its aggression on the Gaza Strip, with American and European support, as its aircraft bombard the vicinity of hospitals, buildings, towers, and the homes of Palestinian civilians, destroying them above the heads of their residents.

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