Moody’s changes Israeli bank to negative

Moody's Investors Service said it changed the outlooks on the deposit ratings of three Israeli banks – Bank Hapoalim BM, Bank Leumi and First International Bank of Israel – to negative from stable.

Concurrently, these ratings were affirmed.

Moody’s said the change in outlook was triggered by: (a) The Israeli authorities' intention to develop a new resolution framework, which could facilitate the resolution of financial institutions with the option of burden sharing with bank creditors; and (b) insights gained from the 2008-09 global financial crisis and regulatory trends, which illustrate how authorities are increasingly employing market solutions in the provision of support to troubled banks in order to protect public finances.

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