The ratings on Israel-based Bank Leumi le-Israel B.M. (Leumi) are based on its strong domestic banking franchise and strong liquid financial profile. The ratings are constrained by its operating environment, primarily the Israeli economy, which is vulnerable to shocks, and the impact that this has on the bank's provisioning and stand-alone performance. Leumi's significant market share blankets all product segments, with its risk profile and operating performance providing a window view of the Israeli economy. The unabated domestic political situation, the disruption to consumer and corporate confidence, the U.S. economic decline, and the global slowdown in the technology sector have collectively taken their toll on growth in the Israeli economy and deferred foreign direct investment and privatizations. Consequently, Standard&
