Israel's Sovereign Credit Downgraded by Morgan Stanley and Moody's Amid Political and Economic Concerns
Morgan Stanley has downgraded Israel's sovereign credit to a "dislike stance" following the passing of laws aimed at limiting the power of the Supreme Court. The analysts cited increased uncertainty about the economic outlook and predicted a weakening of the shekel currency and rising borrowing costs. The ongoing crisis has caused division in Israeli society, leading to protests and a decline in the stock market. Morgan Stanley also warned of the potential for weaker growth and inflation remaining above the Bank of Israel's tolerance band.