JERUSALEM, Oct. 17 (Xinhua) -- Moody's Ratings has kept Israel's sovereign credit rating unchanged, saying the Gaza ceasefire agreement is credit positive but that the country remains exposed to significant risks.
The deal should allow policymakers to refocus on economic recovery and fiscal consolidation, the agency said in a report.
"However, any meaningful benefit to Israel's credit profile would come only after sustained progress beyond the initial phase," Moody's analysts wrote, warning that later stages of the ceasefire would be increasingly difficult to achieve.
"Risks remain high that the deal will not be fully implemented, which could result in the ceasefire breaking and renewed military conflict in Gaza," the report said.
Moody's added that longer-term credit benefits for Israel and the wider Middle East will depend on improved regional security, post-conflict reconstruction and governance in Gaza, the resumption of shipping through the Suez Canal, and reduced tensions between Israel and Iran.
The agency expects Israel's real GDP growth to reach about 2.5 percent this year, up from a previous forecast of 2 percent, and 4.5 percent in 2026.
In September 2024, Moody's downgraded Israel's sovereign credit rating from A2 to Baa1, citing heightened geopolitical risks and a weaker economic outlook. ■
