Chartbook β’ 844 implied HN points β’ 15 Feb 24
- Moody's downgraded Israel's ratings due to ongoing conflict with Hamas, weakening its institutions and fiscal strength - a first in Israeli history.
- Despite the financial toll of the war with Gaza, Israel's debt-to-GDP ratio remains stable, thanks to local currency borrowing and market confidence.
- The aid promised by the US to Israel amidst the conflict serves more as a political statement than a financial necessity, relieving pressure on Israel's domestic priorities.