The recent exacerbation of the Israeli-Palestinian conflict on Oct 7th 2023, has raised the eyebrows of market participants who are speculating how further escalation of conflict might translate to changes in the corporate credit risk of Israeli companies.
To shed lights on this, we look to the Russo-Ukrainian conflict that escalated to Russia’s full-scale invasion of Ukraine in Feb 2022 to draw parallels and infer trends of the evolution of Russian companies’ credit profiles.
Suffice it to say, that despite the nature of the two conflicts being widely different, corporates in both countries are likely to face similar impacts on the real economy.
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