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

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,

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

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.

"Israel’s economy is bearing the yoke of the longest and most expensive war in the country’s history… the Israeli economy is a strong economy that even now attracts investment," Smotrich said. "With God’s help,

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.

Moody's on Friday downgraded Israel's credit rating two notches to "Baa1" from "A2" and maintained a negative outlook amid escalation of the conflict in the region with Lebanese armed group Hezbollah.