Israel Downgraded by Moody's, But Markets Shrug Off Move as War Seen as Temporary Drag

Markets have shrugged off Israel's credit rating downgrade by Moody's, suggesting investors are not concerned
The downgrade was due to increased political risk from the war with Hamas in Gaza
Israel's chief economic adviser believes the economy will recover quickly once the war ends
The budget deficit and debt levels are expected to rise due to war costs but remain manageable
Government officials criticized the downgrade as not warranted and a "manifesto" rather than sound economic reasoning