The S&P company warns against the legal reform: "may lower Israel's credit rating" | Israel today

Financial danger?

The rating giant "Standard & Force" predicts that following the legal reform of Minister Yariv Levin, the ratings of the Israeli bonds may suffer a severe blow, according to an executive at the company, Maxim Rybnikov, who said these things in an interview with the Reuters news agency.

"This could pose risks to the downgrade and undermine the current balance," warned Rybnikov, who is in charge of the international ratings division at S&P.

"The main concern for us will be the security situation that could be undermined in the scenario of a tougher policy," he added.

At the same time, Rybnikov referred to the legal reform under the government.

In this context, he noted that: "If the announced changes in the judicial system cause the weakening of Israel's existing institutional arrangements and balances, this may pose negative risks for the ranking in the future, but we are not there yet," he clarified.

International warning, photo: E.P

In addition, Rybnikov emphasized the sensitive security situation prevailing between Israel and the Palestinian Authority and said that "tough rhetoric that undermines the fragile situation may also create risks. If we see more demonstrations, this will not be good news for the economy either," he estimated.

This is the first time since the formation of the new government that an international rating company has warned of economic sensitivity, in the face of the intent of the reforms agreed upon between Netanyahu and his coalition partners.

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