Moody's has downgraded the Israeli economy. (Image: Palestine Chronicle)
By Palestine Chronicle Staff 
Israel's economic woes continue with Moody's Investors Service downgrading its credit rating on Friday.
This is believed to be Moody's first ever downgrade of a sovereign bond, citing the impact of Israel's ongoing war in Gaza.
Israel was “downgraded one notch to A2, the sixth-highest investment grade rating and on par with Poland and Chile,” according to Bloomberg saidand also reported that Moody's “changed its outlook to negative and completed a review that began in October.”
In its statement, the global ratings firm concluded that the war and its aftermath “will significantly increase political risk for Israel for the foreseeable future and weaken its executive and legislative institutions and its financial strength.”
Moody's expects “Israel's debt burden to be significantly higher than forecast before the conflict.”
Moody's downgrades Israel's credit rating due to war risks; Outlook negative https://t.co/xuh7HlRVlQ pic.twitter.com/JzmBOE3dvO
— Reuters (@Reuters) February 10, 2024
Netanyahu defiant
In his response, far-right Prime Minister Benjamin Netanyahu sought to downplay Moody's decision to downgrade Israel's credit rating and downgrade its future prospects.
“The Israeli economy is strong,” Netanyahu claimed, adding that “the rating downgrade has nothing to do with the economy and is entirely due to the fact that we are in a war.”
Netanyahu said in his statement quoted in the Times of Israel: “Once we win the war, the rating will rise again – and we will win the war.”
However, it is clear that Netanyahu's war on Gaza is not going anywhere after 127 days of outright genocide that resulted in the killing and wounding of over 100,000 Palestinians and the destruction of most of Gaza.
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The Palestinian resistance, on the other hand, has reportedly destroyed well over 1,000 Israeli military vehicles and killed and wounded thousands of Israeli soldiers.
According to economists surveyed by The Washington Post, war has increased cost the Israeli government about $18 billion – or $220 million a day.
(The Palestine Chronicle)
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