Moody’s has delivered sobering news regarding Israel’s credit rating, forecasted to remain at a historic low of BAA1 through 2025. This rating not only reflects an immediate challenge for the nation’s economy but also underscores the broader implications of a war that drags on at length, as Israel tries desperately to get the hostages out before it goes scorched earth. As a credit ratings agency, Moody’s has a critical role in how investors perceive risk, and its prediction signals a time of uncertainty for Israel as it grapples with October 7 and is forced into war by monsters.

Still, Moody’s report highlighted Israel’s economic resilience even in the face of all of this, which is encouraging, yet this is overshadowed by the heightened investor anxiety stemming, no doubt by antisemitism and the lie that the war on Hamas is a genocide. Meanwhile, as the war on Hamas continues, economic growth prospects look slim to none. So too, the road to recovery and stability appears steep, further complicating prospects for attracting foreign investment and fostering sustainable economic development.

Given these challenging dynamics, it’s clear that a credit rating upgrade is unlikely in the near term.