As the war in the Gaza Strip continues, Israel is now also feeling the economic and financial consequences of the fight against the radical Islamic Hamas. Credit rating agency Moody’s has downgraded Israel’s credit rating.
Israel currently receives a credit rating of A2 (formerly A1). Moody’s explained that the “military conflict with Hamas” and its consequences would “increase the political risk to Israel and weaken (Israeli’s) executive and legislative institutions and its fiscal strength for the foreseeable future.”
The outlook for Israel’s national debt was also ‘negative’. The decisive factor for this decision was “the risk of an escalation” of the conflict between Israel and the Hezbollah militia in Lebanon, the country said in a statement on Friday.
Eyewitnesses: First bombings in Rafah
The intense fighting is now increasingly moving to the far south of the Gaza Strip. According to eyewitnesses, the army attacked targets in the city of Rafah despite international warnings. Medical sources said more than 20 people were killed in aerial bombardments on Saturday. The mayor of the city in the south of the coastal area, Mohammed al-Sufi, also confirmed the number of victims to the German news agency.
Israeli soldiers also bombed a Hamas vehicle on Saturday, killing three people, including the head of the Islamist organization’s police intelligence department and his deputy, according to police sources and eyewitnesses. None of the information could initially be independently verified. The Israeli military initially did not comment when asked.
Offensive and evacuation mission
Prime Minister Benjamin Netanyahu had previously ordered the army to prepare an offensive on Rafah. There are still four Hamas battalions in the city. Accordingly, the military leadership should plan the evacuation of civilians in the area.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
