In the aftermath of Hassan Nasrallah’s fall, Israel is left to contend with Moody’s downgrade highlighting the urgent need to confront adversaries while healing a fragile economy

Tens of thousands of Israeli businesses have closed over the last year and reservists are struggling to juggle careers with military service.

Israel was downgraded for the second time this year by Moody’s Ratings as the economic costs mount from almost 12 months of fighting in Gaza and an escalating conflict with Hezbollah.

Moody’s Investors Service has downgraded Israel’s credit rating for the second time this year, citing growing geopolitical risks and the prolonged conflict with Hezbollah in Lebanon. The agency lowered Israel’s rating from A2 to Baa1,

Israel’s economy should have been trundling towards recovery. After all, many of the 300,000 workers who left their jobs to fight have now returned to offices, factories and farms. Instead, a difficult situation is becoming ever more acute.

Nearly a year of war in Gaza has battered Israel's economy, and poverty is now threatening communities including in areas far removed from the fighting against Hamas.

Israel was downgraded again by Moody’s Ratings as the country’s economic costs continue to mount from nearly a year of fighting in Gaza and the intensifying conflict in Lebanon with Hezbollah. The ratings firm on Friday cut Israel two notches from A2 to Baa1,