© Reuters. FILE PHOTO: Israeli Finance Minister Bezalel Smotrich attends an inauguration occasion for Israel’s new gentle rail line for the Tel Aviv metropolitan space, in Petah Tikva, Israel, August 17, 2023. REUTERS/Amir Cohen/File Photo
JERUSALEM (Reuters) – Israeli Finance Minister Bezalel Smotrich on Saturday dismissed a Moody’s (NYSE:) downgrading of Israel’s credit standing, saying the choice linked to the Gaza battle was not primarily based on sound financial reasoning and was tantamount to a pessimistic “manifesto”.
“The Israeli economy is strong by all measures. It is capable of sustaining all war efforts, on the front line and home front, until, with God’s help, victory is achieved,” he mentioned in a response to the choice revealed on Friday.
Citing materials political and monetary dangers for Israel from its battle with the Palestinian militant group Hamas, raging since October, Moody’s lower the nation’s ranking to “A2”, which is 5
notches above funding grade, whereas its credit score outlook was
stored at unfavorable, which means an extra downgrade is feasible.
The company mentioned it expects Israel’s debt burden to be “materially higher” than projected earlier than the battle and defence spending to be almost double the extent of 2022 by the tip of this 12 months in its baseline state of affairs.