Strong market position and franchise as the largest banking group in Israel. Sound liquidity profile, supported by deep domestic funding base and international subsidiaries' deposit-gathering capabilities. Diversified revenue base and earnings recovery. Expected extraordinary government support, if necessary. Comparatively high credit risk profile, being concentrated in Israel and given loan portfolio concentrations. Just adequate asset quality indicators and potential delayed credit deterioration following the recent economic slowdown. Limited medium-term growth prospects given maturity of the domestic market. The ratings on Israel-based Bank Leumi le-Israel B.M. (Leumi) reflect the bank's strong franchise in the State of Israel (foreign currency A/Stable/A-1, local currency AA-/Stable/A-1+), sound funding and liquidity profile, diversified revenues, and recovering profitability. Offsetting factors include Leumi's comparatively high credit risk
