Moody’s boosts Israel’s credit outlook to stable as ceasefires in Gaza, Lebanon hold

31 January 2026, 9:53 am

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A sign for credit agency Moody's, on August 13, 2010, in New York. (AP/ Mark Lennihan)

Moody’s upgrades Israel’s credit outlook from negative to stable, as geopolitical risks subside with ceasefires holding in Lebanon and Gaza.

However, the agency maintains Israel’s Baa1 credit rating.

While Moody’s praises Israel’s resilient economy upgrade in its report, the change in outlook does not mean the credit agency is expected to upgrade the credit rating in the near future; rather, it means the country is not at risk of a further downgrade.

In September 2024, Moody’s cut Israel’s credit score by two levels from A2 to Baa1, citing the “diminished quality of Israel’s institutions and governance” in their ability to manage state finances, and increased spending needs during the war period.