Strong market position and franchise as one of the two largest banking groups in Israel, with superior domestic diversification that enables it to cope better with industry challenges than peers. Sound liquidity, supported by deep domestic funding base. Highly systemic and important bank with a moderately high likelihood of extraordinary government support, if required. Single-party loan concentration in corporate lending, albeit declining. Potential risk of correction in residential real estate given recently rising house prices in Israel. Lower short-term growth prospects. Standard&Poor's Ratings Services' outlook on Israel-based Bank Leumi le-Israel B.M. (Leumi) is stable and reflects our view that the bank's business and financial risk profiles are likely to remain largely unchanged in the next 18-24 months. We
