Israeli Spyware Firm NSO Seen at Risk of Default as Sales Drop

NSO Group is facing a growing risk of default on around $500 million of debt amid a cash burn that’s expected to continue this year after new export restrictions from the U.S., according to Moody’s Investors Service.

The credit grading firm on Monday cut NSO’s rating by two notches to Caa2, or eight levels below investment grade. It said the Israeli spyware company is at increased risk of breaching terms of its debt agreements.

NSO has been battling accusations that its Pegasus phone-hacking technology has been used by some of its government clients to spy on political dissidents, journalists and ...