Why does Moody’s rate France above Israel? The economic gap deserves scrutiny – opinion

An opinion article questions why Moody's rates France (Aa3) four notches above Israel (Baa1) despite Israel's higher GDP per capita, faster growth, lower debt, lower unemployment, and smaller deficit. It calls for Moody's to explain how it weighs Israel's security risks against its stronger economic fundamentals.

An opinion article by Tzally Greenberg questions why Moody's rates France's sovereign credit at Aa3, four notches above Israel's Baa1, despite Israel outperforming France on multiple economic indicators. The piece cites IMF figures showing Israel's GDP per capita at $72,400 versus France's $51,400, growth of 4.5% versus 0.4%, a debt-to-GDP ratio of 68.6% versus 118.5%, unemployment at 2.8% versus 8.4%, and a deficit of 3.2% versus over 5%. The article acknowledges that Moody's may weigh Israel's war exposure and regional instability heavily, but argues that Israel's economic resilience, lower debt burden, and strong growth prospects warrant a fuller explanation of the ratings gap. It notes that French bond yields (5.05%) are higher than Israeli yields (4.06%-4.18%), though cautions that the currencies differ. The piece concludes that a four-notch difference deserves an explanation grounded in evidence.