Earlier on Tuesday, Morgan Stanley downgraded Israel’s sovereign credit to a “dislike stance”.
In advance of the Moody’s report, prime minister Binyamin Netanyahu and finance minister Bezalel Smotrich issued a joint statement insisting the Israeli economy remains robust. Israeli stocks and the shekel continued to lose value in response to Mr Netanyahu’s right-wing government’s controversial judicial overhaul, which opponents claim undermines Israeli democracy.Military reservists on Tuesday began fulfilling their threat not to report for army duty, and the military warned that within weeks the army’s combat effectiveness will be impaired.
Supreme court president Esther Hayut and several other supreme court justices cut short an official visit to Germany and returned to Israel urgently to consider the petitions. A large panel of at least 11 supreme court justices is expected to consider the petitions but rulings on petitions that address such weighty issues often take many months.