An international credit rating agency warned that the breakup of the Israeli government would have a negative impact on the country's credit rating.
The move comes some two weeks after Fitch downgraded Israel from "positive" to "stable" in its long-term foreign currency Issuer Default Rating.
Moody's has not downgraded Israel's rating, which remains at A1, but indicates that the decision to go to elections could delay reforms that are supposed to accelerate growth, as well as interfere with fiscal planning for the coming years.
In its latest report, Moody's economists indicate that the early elections could delay reforms that are meant to accelerate growth. The elections could also interfere with fiscal planning in the coming years, Moody’s said.
Its latest report stated that the lack of stability in Israeli politics is a negative indicator in relation to the national debt, mainly because it holds up reforms meant to stimulate growth. Moody's gave Israel an A1 credit rating at the beginning of October, with a stable forecast, basing it's rating on a strong economic growth model and efficient governance.
