Israel government collapse is credit-negative: Moody's

Moody's Investors Service said on Monday the collapse of Israel's governing coalition is negative for Israel's credit rating, but it took no action. "The political turbulence is credit-negative because it creates policy uncertainty, weighing on economic sentiment, curbing investment and dampening economic activity," Moody's analyst Kristin Lindow wrote in a report.
Parliament voted last week to dissolve itself after Prime Minister Benjamin Netanyahu fired two centrist ministers in his 20-month-old coalition government because of political infighting. A new election will be held on March 17, 2015. But a number of reforms, aimed at increasing competition and lowering import taxes that would help economic growth, look likely to stall.