Moody’s: Israeli economy can withstand shock


WASHINGTON (JTA) — Israel is capable of withstanding the recent shocks to its economy, one of the leading credit raters said.

In its January Israel report, Moody’s said it would not change its relatively high A-1 rating it awarded Israel last April.

"In addition to falling victim, like the rest of the world, to the global credit crunch, Israel is engaged in a heightened military confrontation with Hamas in Gaza," Moody’s said. "Israel is the only A-rated issuer in an active state of war on its territory."

Nonetheless, Moody’s predicted "continued rating stability" based on "the expectation that the fiscal impact of these shocks will be relatively short in duration, paid for by savings in other areas, and even more importantly, that liquidity will remain fully available."

Moody’s, along with Fitch and Standard & Poor’s, is one of the three leading credit raters.

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