Moody’s downgrades Israel’s credit rating

The US ratings agency Moody's downgraded Israel's credit rating Friday due to the impact of its ongoing conflict with Hamas in Gaza, lowering it by one notch from A1 to A2.

In a statement, Moody's said it had done so after assessing that "the ongoing military conflict with Hamas, its aftermath and wider consequences materially raise political risk for Israel as well as weaken its executive and legislative institutions and its fiscal strength, for the foreseeable future."

It was the first time Israel has been downgraded, Bloomberg reported.

Moody's also lowered its outlook for Israel's debt to "negative" due to "the risk of an escalation" with Hezbollah.