
Israel's outlook improved to "stable" by Moody's amid easing geopolitical tensions

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Moody's has upgraded Israel's outlook to "stable" from "negative" due to reduced geopolitical risks following a ceasefire with Hamas. Despite ongoing tensions, the agency maintains Israel's ratings at "Baa1". Israel's budget deficit is projected to decrease to 4.7% of GDP in 2025, down from 6.8% in 2024, attributed to increased revenue despite defense spending. This follows a similar outlook revision by S&P in November after the ceasefire agreement.
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