Maya Margit 12/29/2020
In interview with The Media Line, ratings director says firm will be ‘closely monitoring’ upcoming election; economic analysts warn of challenges caused by political instability
Israel’s rating could be affected by the results of its upcoming election, global ratings firm S&P has cautioned.
In an email interview with The Media Line, Maxim Rybnikov, director of S&P’s Europe, Middle East and Africa sovereign ratings team, said that the agency would be “closely monitoring the situation in the run-up to and aftermath of the planned general election, assessing the potential impact on our ratings.
In our view, an inconclusive election outcome could present a fiscal risk in a scenario where agreeing on budget consolidation measures proves difficult or multiple spending promises become a precondition to forming a new government, leading to continued accumulation in government debt after 2021, in contrast to our current expectation that public debt woul