Moody’s: Israel election won’t change rating, but judicial overhaul could

According to Ynet, Moody’s rating agency announced that Israel's credit rating remains at Baa1 with a stable outlook, and the election results will not have an immediate impact. However, the agency warned that if the next government continues to advance measures that undermine judicial independence and weaken checks on executive power, its assessment of Israel's institutional strength could be lowered. Moody’s also raised its economic growth forecasts for 2026 and 2027 to 5% and 6% respectively, though it emphasized that much of this revision stems from statistical changes by Israel's Central Bureau of Statistics. While Moody’s focuses on institutional stability and international relations, its rival, Fitch, has warned about political deadlock and rising government debt.

