Strong market position and franchise as one of the two largest banking groups in Israel. Sound liquidity profile, supported by deep domestic funding base and international subsidiaries' deposit-gathering capabilities. Diversified revenue base and earnings recovery. Likelihood of extraordinary government support, if required. Comparatively high credit risk profile, being concentrated in Israel and given loan portfolio concentrations. The continued rise in house prices in Israel increases the risk of a major correction that could impair economic growth and harm credit quality. Limited medium-term growth prospects given maturity of the domestic market. Moderate capitalization. The ratings on Bank Leumi le-Israel B.M. reflect Standard&Poor's Ratings Services' view of its strong franchise in Israel, sound liquidity profile, diversified revenue base, and likelihood
