Credit rating agency Moody’s late on Friday upgraded Israel’s credit outlook from negative to stable, as geopolitical risks subside with ceasefires holding in Lebanon and Gaza.

The rating agency said that the stable outlook reflects the “assessment that Israel’s exposure to geopolitical risk has materially eased from very high levels,” following the end of the military conflict with Iran in June 2025 and the ceasefires with the Hamas terror group in Gaza and Hezbollah in Lebanon. The ceasefire in Gaza entered into effect on October 10, halting two years of war that began with the devastating Hamas-led attack on Israel on October 7, 2023.

“While Israel’s geopolitical and security environments remain fragile, the signs of resilience of the economy to the conflicts of the past two years and the evidence of a large but also controlled impact on government finances indicate that the credit risks are now balanced,” Moody’s said. “Israel’s credit strengths and resilience are evidenced by the relative robustness of GDP growth and continued strong growth and investment in the country’s advanced technology sector, which has continued despite the heightened geopolitical tensions in recent........

© The Times of Israel