Morgan Stanley cuts Israel sovereign credit to “dislike stance” after judiciary changes

LONDON (Reuters) – Morgan Stanley (NYSE:) cut Israel sovereign credit to a “dislike stance” on Tuesday following judiciary changes that will drastically limit the powers of the country’s Supreme Court.

“We see increased uncertainty about the economic outlook in the coming months and risks becoming skewed to our adverse scenario,” Morgan Stanley’s analysts said in a research note.

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