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The global rating agency Moody's issued an unusual warning today (Tuesday) about the apparent damage to the credit rating following the legal reform.
Nevertheless, she added that she does not intend to download it at the moment.
According to the company's review published this evening, it was determined that if the policy continues and the legal reform continues to be promoted, there may be dramatic effects on the credit rating in the long term.
However, they added, the consequences are yet to be seen in the short term.
"The proposed reforms could weaken the institutions and negatively affect its sovereign credit profile," the company claimed.
"We generally expect a highly rated government to implement major institutional reform based on broad consensus and through extensive dialogue and clear communication," they added.
The company, which previously commented on the political situation in the country when it warned of a drop in the credit rating due to the platform of "religious Zionism", claimed that it is possible that the legal changes will substantially weaken Israel's attractiveness as an investment destination, and change the perception of its economic strength.
They also added and warned about the apparent dramatic damage to the high-tech industry, which is a significant component of the country's economy and many of those who belong to it have already spent their money outside its borders.
The legal changes will substantially weaken Israel's attractiveness as an investment destination (Photo: Roni Kanfo)
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As of this time, the company sees the Israeli institutions as a supporting factor in its "a1" credit profile, which is considered relatively high.
This, compared to various countries in the European Union that are ranked lower.
"The grade reflects our assessment, the quality of the executive and legislative institutions, as well as the strength of the legal system and civil society, which we denote by "aa" and "a" respectively in our analysis," they explained.
If the proposed judicial reforms are fully implemented, the analysts added, there could be downward pressure on these scores.
"The warning from the rating agency Moody's shows again why Netanyahu is pressuring the opposition to enter into 'negotiations,'" Labor Party chairman Marev Michaeli responded to the company's warning. . The mask fell earlier than expected. It is forbidden to negotiate with him or compromise. A complete stop of the legislation. Final point"
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