The US investment bank Morgan Stanley lowered Israel's credit worthiness on Tuesday on the backdrop of the government's controversial judicial reform plans, as the financial agency Moody's warned of "significant risk" as judicial overhaul crisis continues.
"There is a significant risk that political and social tensions over the issue will continue with negative consequences for Israel's economy and security situation," Moody's said in a statement sent to Al-Monitor.
Morgan Stanley moved Israel's sovereign credit rating to a "dislike stance" in response to the reforms. The bank noted "risks" as well as "increased uncertainty about the economic outlook," Reuters reported.
A sovereign credit rating is an assessment of a state's credit worthiness and helps assess the risk of investing in a country's debt.