Moody’s: All-out conflict could carry grave ‘credit consequences’ for Israeli debt issuers

An all-out military conflict with Hezbollah or Iran could have significant “credit consequences” for Israeli debt issuers, credit ratings agency Moody’s warned in a statement on Tuesday.

“We continue to assume that the ongoing tensions will not escalate into an all-out military conflict between the two sides or extend to involve Iran, thus limiting the immediate credit-negative impact on the region,” the statement read.

“However, an all-out military conflict with Hezbollah or Iran could have significant credit consequences for Israeli debt issuers.”

In February, Moody’s downgraded Israel’s credit rating to A2 with a negative outlook, citing material political and fiscal risks from its ongoing war in Gaza.

Attribution: Reuters