Israel-Hamas conflict: Moody's may lower the credit rating of the Israeli government

 Israel-Hamas conflict: Moody's may lower the credit rating of the Israeli government

As the Hamas conflict intensifies, the US credit rating firm Moody's Investors Service issued a warning that it would reduce Israel's rating. Israel's ability to borrow money during the conflict may become more costly due to the credit rating fall.

Currently, Israel has an A1 credit rating from Moody's. The US rating agency, nevertheless said that the war "raises the possibility of longer lasting and material financial impact".

As a result of the conflict, Moody's said on Friday that it was reviewing several of the Israeli government's credit ratings for a possible downgrading, including its long-term foreign-currency and local-currency ratings.

LIVE UPDATES ON THE IRAQ-HAMAS WAR

"Israel's credit profile indicates resilient to terrorist attacks and fighting in the past," stated the statement.

The seriousness of the ongoing armed confrontation does, however, heighten the probability of more serious and long-lasting credit effects, it said.

Following Fitch Ratings' announcement that it was putting Israel's A foreign currency and local currency issuer default ratings on "Ratings Watch Negative," Moody's made its comment.

According to Fitch, the declaration highlighted "the heightened risk of an extension of Israel's current conflict to include large-scale combat with multiple actors, over an extended duration of time."

Meanwhile, US President Joe Biden urged Americans to increase their support for Israel and Ukraine, which are both engaged in violent, unpredictable conflicts.

On Friday, he promised to provide to Congress a "urgent budget request to fund America's national security" and "critical partners including Israel and Ukraine".

The request will include $14 billion to strengthen Israeli defenses as well as $60 billion in assistance for Ukraine over the next year.

Over 1,400 individuals have died in Israel, the most of them civilians murdered during Hamas' devastating onslaught. Around 200 more people were kidnapped. The relatives of 203 captured people have been informed, the Israeli military said on Thursday.

Since the battle began, more than 74 Palestinians have perished in the West Bank. Additionally, since Israel ordered them to leave, nearly a million Palestinians—roughly half of Gaza's population—have left their homes in the north.