JERUSALEM, Feb. 14 (Xinhua) -- Moody's Investors Service on Tuesday evening downgraded the long-term deposit ratings of Israel's five big banks from A2 to A3, with a "negative" outlook instead of "stable."
The action followed the downgrading to A2 from A1 of the Israeli government's credit ratings by the global agency on Friday.
Moody's analysts mentioned that the five banks' long-term deposit ratings were lowered due to reduced government support, influenced by the downgrade of Israel's sovereign ratings.
The five banks being downgraded are Bank Leumi Le-Israel, Bank Hapoalim, Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd., and First International Bank of Israel Ltd.
There's also worry about a potentially more negative impact on the economy if the ongoing conflict escalates, which could severely affect the banks' standalone fundamentals beyond current expectations, Moody's explained. ■
