Bethel Finance news:
Moody's Investors Services has downgraded the deposit ratings of Israel's five largest banks by one level because it feels their profitability will remain weak due to rigid cost bases.
Moody's cut the deposit rating of Bank Hapoalim (TASE: POLI), Bank Leumi (TASE: LUMI), and Mizrahi Tefahot Bank (TASE:MZTF) to A2 from A1. It cut the ratings of Israel Discount Bank (TASE: DSCT) and First International Bank of Israel (TASE: FTIN) to A3 from A2.
Moody's said that the banks’ “moderate earnings-generating capacity prevents significant capital build-up which, in turn, hinders loss- absorption capacity.” Their capacity to absorb losses is hampered by their highly concentrated loan books, and concerns over the performance of the housing market.
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