The ratings on Israel-based Bank Leumi le-Israel B.M. (Leumi) reflect the bank's strong franchise in the State of Israel (foreign currency A/Stable/A-1, local currency AA-/Stable/A-1+), sound funding and liquidity profile, diversified revenues, and recovering profitability. Offsetting factors include Leumi's comparatively high credit risk profile, being concentrated in Israel and given loan portfolio concentrations, just-adequate asset quality indicators, and potential delayed credit deterioration following the recent economic slowdown. Another constraining factor includes the mature, and highly competitive, domestic market environment, limiting growth prospects over the medium term. Standard&Poor's Ratings Services considers Leumi to be a systemically important bank to Israel, which we classify as interventionist toward its banking sector. Consequently, the long-term rating on Leumi incorporates a one-notch uplift
