S&P sees Israeli judicial reforms a "downside risk" for credit rating

Judicial reform plans by Israel's new hard-right government could pressure the country's sovereign credit rating even as the budget remains under control, according to an S&P analyst, as could a violent escalation with Palestinians. In an interview with Reuters, Global Ratings director Maxim Rybnikov said the agency was closely following moves Prime Minister Benjamin Netanyahu's cabinet might make in the occupied West Bank, as well as the pledged judiciary overhaul. "This could present downside risks (to Israel's ratings), upsetting the current equilibrium," he said.

Judicial reform plans by Israel's new hard-right government could pressure the country's sovereign credit rating even as the budget remains under control, according to an S&P analyst, as could a violent escalation with Palestinians.

In an interview with Reuters, Global Ratings director Maxim Rybnikov said the agency was closely following moves Prime Minister Benjamin Netanyahu's cabinet might make in the occupied West Bank, as well as the pledged judiciary overhaul.

"This could present downside risks (to Israel's ratings), upsetting the current equilibrium," he said. "The primary concern for us would be the ... security situation which could be undermined in a scenario of more hardline policies."

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