Shafaq News/ Moody's, a leading global credit rating and research firm, announced on Friday that it has placed Israel's rating, currently at A1, under review for a possible downgrade due to the escalating military conflict with the Hamas movement.

Moody's cited concerns about the prolonged and intense nature of the conflict, stating that extended hostilities could significantly impact policies, public finances, and the economy.

"While a short-lived conflict could still have credit impact, the longer lasting and more severe the military conflict, the greater its impact is likely to be on policy effectiveness, public finances, and the economy," Moody's noted in its statement.

The cost of insuring Israeli government debts using sovereign credit swaps experienced a substantial increase. Investors utilize credit default swaps either as a protection or a speculative tool. Last week, the cost of purchasing swaps for Israel surged by 80 percent, indicating rising market concerns.

This development comes after a surprise attack by Hamas against Israel on October 7; in retaliation, Israel launched intensive airstrikes on the Gaza Strip, resulting in at least 4200 deaths, primarily civilians, according to the Gaza Ministry of Health.

Fitch, another rating agency, had already placed Israel on negative review earlier this week and cautioned that any significant escalation in the conflict could lead to a rating downgrade.

Israel's credit rating has never been downgraded by the three leading rating agencies: Standard & Poor's Global, Moody's, and Fitch.