On Thursday, the Moody’s agency announced a review of Israel’s long-term debt rating (currently A1) for a possible downgrade after the start of the war with Hamas, reports AFP.

“This review was prompted by the sudden and violent conflict between Israel and Hamas,” Moody’s said.

“The most important consequence is the human price (…). This rating announcement considers the credit implications of recent events,” Moody’s notes.

“Previously, the forecast was stable,” Moody’s said. During the review, it will “assess whether the conflict is likely to progress to a resolution, or whether there is a likelihood of significant escalation over an extended period.”

“The review will focus on the likely duration and scope of the conflict, as well as an assessment of its consequences for Israel’s institutions, including the effectiveness of its policies, public finances and economy,” Moody’s said, adding that “the review period may be longer.” than the usual three months.”

Moody’s emphasizes the unusual nature of the war caused by the October 7 attack by Hamas.

“Israel’s credit profile has proven resilient to terrorist attacks and military conflicts in the past. However, the severity of the current conflict increases the likelihood of a significant and long-term impact on lending,” the agency emphasizes.