Moody’s warns that Israel faces grave 'consequences' from its ongoing wars

Moody’s has issued a warning that a full-scale military conflict involving Hezbollah or Iran could have severe "credit consequences" for Israel.

The credit ratings agency noted that while it currently expects the ongoing tensions not to escalate into such a conflict, doing so would significantly impact Israel’s debt issuers.

In its statement, Moody’s said that "an all-out military conflict with Hezbollah or Iran could have significant credit consequences for Israeli debt issuers."

This warning comes after Moody’s downgraded Israel’s credit rating in February to A2, with a negative outlook due to political and fiscal risks stemming from Israel's ongoing war on Gaza.