Moody's plans to downgrade Israel's credit rating

Israel's Channel 12 has reported that Moody's credit rating agency is expected to downgrade Israel's credit rating today, dealing a significant blow to the country's economy.

Last month, Moody's warned that a full-scale military conflict between Israel and either Hezbollah in Lebanon or Iran could have "credit implications" for Israeli debt issuers.

"We continue to assume that ongoing tensions will not escalate into a full-scale military conflict between the two sides or extend to include Iran, which will limit the immediate credit downside impact on the region," the agency stated.