Moody's has upgraded Israel's credit outlook from negative to stable, reflecting a reduction in geopolitical risks as ceasefires in Gaza and Lebanon continue to hold. The agency maintained Israel's sovereign credit rating at Baa1, the level it was downgraded to in September 2024 amid heightened conflict. Moody's cited the easing of security threats and the resilience of Israel's economy in its decision, noting that the stable outlook indicates a lower risk of further downgrades, though not an imminent upgrade. Despite ongoing fragility in the region, the agency views the current environment as more stable, marking an improvement in Israel's economic and fiscal prospects after a period of significant strain.