The ratings on Bank Leumi le-Israel B.M. (Leumi) are based on its strong domestic banking franchise, with about 30% of the Israeli banking market, and reflect its stand-alone stable performance and strong liquid financial profile. The government's ownership reflects a reduced share of less than 42% corresponding to its long-standing position of privatization. Ratings are constrained by Standard&Poor's measures of Leumi's core capital, which reflects a downward trend, as well as its operating environment, primarily the Israeli economy, which is vulnerable to shocks. Leumi's franchise blankets all market and product segments, with its risk profile and operating performance providing a window view of the Israeli economy. The economic slowdown in the U.S., the global slowdown in the technology
