International credit rating companies have turned to the economic and political leaders in Israel in recent days and demanded clarifications in view of the continuation of the unilateral legislation of the judicial reform and the increasing protests against it, Kan 11 News reported on Friday.
The officials reportedly told the Israelis that the goings on in Israel contradict the messages they have received from Jerusalem in recent months, including in talks with Prime Minister Benjamin Netanyahu. Those messages indicated there would be an effort to reach understandings on the judicial reform and were among the factors that led to the credit rating agencies’ decision not to lower Israel's credit rating.
According to Kan 11 News, the credit rating companies are now considering issuing special announcements regarding Israel outside the fixed dates for the publication of rating decisions or alerts.
In May, the S&P credit rating agency left Israel's credit rating at AA- and its credit rating outlook at "stable".
In a statement, S&P said that the basis for the decision is an assumption that a certain agreement will be reached regarding the government’s proposed judicial reform, allowing for a relaxation of increased political tensions.
A month earlier, Moody’s downgraded Israel’s credit rating outlook to stable.
“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 at the time.
(Israel National News' North American desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Israel National News articles, however, is Israeli time.)