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 vulnerable, but improving, loan quality and tight capitalization within a risky operating environment. Ratings are also restricted by the latter's impact 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 in Israel, where the state is considered to be interventionist toward such banks with support in a crisis, if required. Given Leumi's significant market share, its risk profile will be largely
