Prime Minister Benjamin Netanyahu on Saturday criticized the global ratings agency Moody's for downgrading Israel's credit outlook from positive to stable due to concern over the judicial reform.

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The ratings agency showed an imperfect grasp of Israeli realities and a lack of faith in the famous resilience of the local economy, Netanyahu charged in a joint statement with Finance Minister Bezalel Smotrich.

"The concern that Moody's analysts raise about the public controversy and its effect on Israel's political and economic stability is natural for those who do not know the strength of Israeli society," the statement said. "The analysts at the Moody's ratings agency correctly recognize the strength of the Israeli economy in all indices and the correct and responsible economic leadership that we lead, with the wise management of public spending and in the advancement of growth-encouraging reforms."

"As those who believe in the strength of Israeli society, its unity, and its ability to overcome disputes and crises, as it has done many times in the past, we are confident that with God's help, it will be thus once more," it said.

An earlier statement to the press attributed to "sources close to Netanyahu" said that Moody's analysts "are being affected by the atmosphere. They have friends in Israel who are telling them tall tales. Are they informed on the issue? Not really. In conversations with them, we found out that they don't really understand the details."

This article was first published by i24NEWS.

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Prime Minister Benjamin Netanyahu and President Isaac Herzog have held talks with Moody's Investor Service this week in an attempt to keep Israel's A1 credit rating.

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The company is expected to downgrade Israel's credit outlook due to the judicial reform. Last month, it warned that the controversial legislation could weaken institutions and negatively impact Israel's sovereign credit profile.

Moody's is expected to make an announcement on Friday, prompting fears over how a lowered rating would affect the country's economy, although experts believe that Israel's credit rating – rather than outlook – will remain the same.

In talks with Moody's officials, Netanyahu reiterated that investing in the Israeli economy was "the safest" option and Herzog shared about the progress in the negotiations he leads to reach a broad consensus on the judicial reform.

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