Moody's has upgraded Israel's credit outlook from 'negative' to 'stable', reflecting increased confidence in the country's economic and geopolitical stability. Although the sovereign rating remains unchanged, the move indicates that risks have eased since the height of recent conflict. Moody's cited Israel's resilient economy, strong institutions, and continued access to international capital markets as key factors supporting the improved outlook. The agency also noted the stability of Israel's financial system, even as defense spending remains high. In a separate development, the Bank of Israel unexpectedly lowered its interest rate for the second time in recent months, signaling a proactive approach to supporting economic recovery.