Moody’s: Israel credit rating to stay at historic low in 2025

Credit ratings company Moody’s warns that Israel’s rating remains under pressure as geopolitical and political risks persist.

A beggar sits and asks for money amid the coronavirus crisis, Jerusalem, 2020 (photo credit: MARC ISRAEL SELLEM)
A beggar sits and asks for money amid the coronavirus crisis, Jerusalem, 2020
(photo credit: MARC ISRAEL SELLEM)

Credit ratings agency Moody’s has predicted that Israel’s credit rating will stay the same in 2025, it announced in an opinion on Tuesday.

Israel’s current rating is BAA1, historically its lowest rating ever, and it is trending negatively.

The firm noted that Israel does have strong economic resilience to shocks, but investor uncertainty over economic growth is higher than usual because of the country’s “very high exposure to geopolitical risks.”

Moody’s also noted that the “polarized political system” has affected the rating.

It said that a credit rating upgrade was unlikely in the foreseeable future due to the continuation of the Israel-Hamas War.

Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, US, November 12, 2021. (credit: REUTERS/ANDREW KELLY/FILE PHOTO)
Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, US, November 12, 2021. (credit: REUTERS/ANDREW KELLY/FILE PHOTO)