September 20, 2019 / 10:12 AM / 25 days ago

Shaky coalition would hurt Israel's credit rating - Moody's

LONDON, Sept 20 (Reuters) - A failure to form a new government in Israel or the formation of a “disparate” coalition would hurt the country’s credit profile, rating agency Moody’s said on Friday.

After failing to secure a governing majority in a tight election this week, Prime Minister Benjamin Netanyahu has seen an offer to form a coalition with his strongest political rival, Benny Gantz, rejected.

“The ability and willingness of the next government to address the difficult fiscal trajectory in a timely manner, such that the material debt reduction gains of the past decade are broadly preserved, will be an important driver of our assessment of the sovereign credit profile,” Moody’s said in a note.

“The failure to form a new government, or the formation of a disparate coalition unable to command the internal consensus needed to advance new fiscal measures, would present a risk to Israel’s credit profile,” it added.

Israel is currently rated as A1 with a positive outlook by Moody’s. A1 is equivalent to an A+ score of S&P and Fitch. (Reporting by Tom Arnold; editing by Marc Jones)

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