Moody's Investors Service on Friday changed the outlook on Israel's credit ratings to stable from positive and affirmed the A1 foreign-currency and local-currency senior unsecured and foreign-currency and local-currency long-term issuer ratings.
“The change of outlook to stable from positive reflects a deterioration of Israel's governance, as illustrated by the recent events around the government's proposal for overhauling the country's judiciary,” the credit rating agency said in its announcement.
“While mass protests have led the government to pause the legislation and seek dialogue with the opposition, the manner in which the government has attempted to implement a wide-ranging reform without seeking broad consensus points to a weakening of institutional strength and policy predictability,” it added.
“As a result, the risks on Israel's rating are now balanced, leading to a stable outlook. On the downside, while the deliberations about the exact form of the judicial reform continue, the government has reiterated its intention to change how judges are selected. This means that the risk of further political and social tensions within the country remains,” said Moody’s.... Read More: Arutz-7