Moody's downgraded Israel's credit rating to a historic low.

International rating agency Moody's has downgraded Israel's credit rating from A2 to Baa1, the lowest level in the country's history. Second reduction in a year: in February the rating was lowered from A1 to A2. The forecast remains negative due to the worsening situation in the north of the country and the security threat from Hezbollah.

In April, S&P and in August Fitch cut Israel's ratings, which had previously been held at relatively high levels of A1 and AA-. Moody's rating may also be downgraded at the end of October. After a stable forecast in March, the situation in the country's economy has become more tense.

The chief accountant of the Israeli Ministry of Finance, Yaeli Rotenberg, called Moody's decision excessive, noting that the war on various fronts is putting pressure on the economy. Swift action is needed to approve a 2025 budget that can restore reserves and reduce debt, support growth and ensure the country's security to avoid further downgrades.

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