International credit rating agency Moody's has downgraded Israel's sovereign rating to Baa1, with a negative outlook. This downgrade will have significant implications for the Israeli economy, including higher taxes, higher prices, erosion of wages, and harm to savings and pensions. The downgrade will make it more expensive for the Israeli government to raise new debt, as lenders will demand higher interest rates to compensate for the higher risk. Additionally, the lower rating is likely to harm the performance of pension funds and advanced training funds, affecting the public's savings. The downgrade may also lead to higher interest rates on corporate debt and a higher rate of inflation.