Credit Ratings Downgraded for Israel and Mount Sinai

Moody's has downgraded Mount Sinai Hospital's credit rating from Baa1 to Baa3, close to 'junk' status, due to financial challenges, including substantial debt, losses at Beth Israel hospital, and a recent cyber attack affecting cash flow. Mount Sinai has initiated an improvement plan, which includes closing Beth Israel's 16th Street Hospital to save costs. Meanwhile, Fitch Ratings downgraded Israel's credit rating from A+ to A with a negative outlook, citing the ongoing war in Gaza, heightened geopolitical risks, and its impact on public finances. Fitch forecasts Israel's budget deficit to rise to 7.8% of GDP in 2024, with debt remaining above 70% of GDP in the medium term. The conflict could continue into 2025, putting additional pressure on Israel's economy through increased military spending and infrastructure damage.