Moody's: Netanyahu's decisive win 'credit positive' for Israel's credit

Part of the good news, as far as Moody's is concerned, is fact that a right-wing government would be more stable than the previous one.

March 23, 2015 16:40
1 minute read.

Shekel money bills. (photo credit: REUTERS)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Moody’s says Netanyahu’s decisive win ‘credit positive’ • By NIV ELIS Prime Minister Benjamin Netanyahu’s decisive elec - toral victory is a good sign for Israel’s credit, accord - ing to credit-ratings agency Moody’s, which dubbed the outcome “credit positive” on Monday.

The agency said it expect - ed a budget to be presented within 100 days and that it would keep to fiscal rules.

Be the first to know - Join our Facebook page.

“Although the precise com - promises within the new budget remain to be seen, because the probable choice for finance minister will be someone new to the post, we expect the government’s fis - cal rules to contain spend - ing growth and keep credit metrics for Israel (A1 stable) on their well-established improving trend a credit pos - itive,” the company wrote in a report.

That the budget will be presented well into the fiscal year also indicates that a two- year budget is likely, mean - ing new budget negotiations won’t be on the table until the end of 2016.

But part of the good news, as far as Moody’s is con - cerned, is that a right-wing government would be more stable than the previous one, which fell apart in less than two years.

“With a dominant 67-seat majority likely, we expect the new administration will be more long-lived than the last, providing time to coalesce public opinion around key issues facing the country,” the report said. The coalition “would likely be inherently more stable than a coalition led by the center-left Zionist Union, which would struggle to put together a majority.”

The report does not signal a change in Israel’s credit rating, which influences its borrowing costs, but simply shows how the elections will likely affect its fiscal situation.

When elections were called in December, Moody’s said the government instability and period of policy uncertainty were “credit negative.”

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection