After overhaul law, Morgan Stanley slashes Israeli sovereign credit to ‘dislike stance’

FILE - In this file photo from October 18, 2011, the Morgan Stanley logo is displayed on its Times Square building, in New York. (AP Photo/Mark Lennihan, File)
FILE - In this file photo from October 18, 2011, the Morgan Stanley logo is displayed on its Times Square building, in New York. (AP Photo/Mark Lennihan, File)

Morgan Stanley downgrades Israel’s sovereign credit to a “dislike stance,” after the government passed the first piece of judicial overhaul legislation.

“We see increased uncertainty about the economic outlook in the coming months and risks becoming skewed to our adverse scenario,” says a research note by analysts at the US investment bank, according to Reuters.

“Markets are now likely to extrapolate the future policy path and we move Israel sovereign credit to a ‘dislike stance.'”

The research note comes as Moody’s, one of the “Big Three” credit rating agencies, is due to issue a special report on Israel later today, and as Israeli stocks and the shekel continue to shed value since the coalition yesterday approved the Reasonableness Law in a vote boycotted by the opposition.

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