Moody's downgrades ratings of 5 Israeli banks

By Ovunc Kutlu

ISTANBUL (AA) - Moody's announced Tuesday it downgraded the deposit ratings of five Israeli banks.

The agency said the outlook on the long-term deposit ratings is negative for the Bank Leumi Le-Israel B.M., Bank Hapoalim B.M., Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd. and First International Bank of Israel Ltd.

Moody's announced Friday it lowered Israel's foreign-currency and local-currency senior unsecured ratings to A2 from A1 and changed its outlook to negative.

The agency said last week that "the ongoing military conflict with Hamas, its aftermath and wider consequences materially raise political risk for Israel as well as weaken its executive and legislative institutions and its fiscal strength, for the foreseeable future."