The ratings on Israel-based Bank Leumi le-Israel B.M. (Leumi) are based on its strong domestic banking franchise and high liquidity. The ratings are constrained by its weak, but improving, asset quality and tight capitalization within a risky operating environment, primarily the Israeli economy, which is concentrated and vulnerable to shocks; and the impact that this has on the bank's business prospects and financial performance. The ratings benefit from a one-notch uplift from expected government support in the event of a financial or systemic crisis, as Standard&Poor's Ratings Services perceives Leumi to be a systemically important bank. Given Leumi's significant market share, its risk profile will be largely influenced by its operating environment, which is characterized by a prosperous,
