Herzog, Netanyahu lobby Moody’s on credit rating

President Isaac Herzog and Prime Minister Benjamin Netanyahu have held talks with senior executives of the Moody’s credit rating agency to persuade them not to lower Israel’s credit rating.

The talks, first reported by Channel 12 television Thursday night, reflect the enormous fear over how a lowered rating would affect the economy. According to Channel 12’s report, some of Israel’s leading economists and businesspeople have also discussed the issue with the agency.

Moody’s is slated to issue its decision on Friday. Currently, Israel’s rating is A+ with a positive outlook, meaning the company expects its rating to rise. But Moody’s has previously warned that the government’s planned legal overhaul could negatively impact this rating.

Though the agency isn’t expected to change Israel’s A+ rating, it may well change the outlook from positive to stable. The outlook was raised to positive just last year, after the previous government was formed.

• A fiscal warning from Israel’s chief banker
• Majority of Israeli startups fear judicial overhaul, to transfer funds abroad
• Moody’s issues unusual warning to Israel, tying judicial coup to credit rating downgrade

The shekel sank in trading during the week of Passover in anticipation that Moody’s will soon publish a negative report on Israel.

Negotiators from the government and the two biggest opposition parties will meet at the President’s Residence next week for continued discussions on a compromise over the legal overhaul. This will be the first time they delve into the details of the legislation.