Story perspectives
Moody's Cuts Israel Growth Forecast, Cites Judicial Threat
7/15/2026
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Story summary
- Moody's warned that curbing Israel's attorney general could further pressure its credit rating.
- It cut the 2026 growth forecast to 3.7%, raised debt-to-GDP to about 70% and kept the sovereign rating at Baa1 with a stable outlook.
- Moody's said ceasefires with Iran, Hezbollah and Hamas keep defense spending near 6% of GDP, which could improve the rating if they hold or fall if tensions rise or the judiciary weakens.
