Ratings agency Moody's has announced that it has placed the ratings of five Israeli banks on review for downgrade. In practice this means that Moody's may decide to cut the rating of the banks' deposits in the coming months from A2 (the equivalent of A at S&P) to a lower rating.
The banks under review by Moody's are Israel's biggest five banks: Bank Leumi (TASE:LUMI), Bank Hapoalim (TASE: POLI), Israel Discount Bank (TASE: DSCT), Mizrahi Tefahot Bank, and First International Bank of Israel (TASE:FTIN1; FTIN5).
For many years Moody's ratings for Israel have been stable but since the war began that is currently changing. Moody's said that the latest action follows a review of the credit rating outlook of the Israeli government's debt, which is rated at A1 (the equivalent to S&P's A+ rating).
Yesterday Moody's said that it is reviewing the rating of three Israel-related energy companies - Israel Electric Corp., Energean, and the Leviathan Bond Co, Globes reports.
