The Turkish-Israeli deal will be positive for the Israeli economy’s credit as it expands the market for its gas exports, Moody’s said in a research note on July 4th.
The report also added that the reconciliation between the two countries would provide a firm basis for the development of the Israeli gas sector.
On June 28, Israel (A1 stable) and Turkey (Baa3 negative) signed an agreement that formally normalizes relations between the one-time allies, Hurriyet Daily News reports.
“The credit-positive accord supports the Israeli economy by expanding the market for its gas exports from the giant Leviathan offshore field, where development will soon begin following the Knesset’s recent resolution of various regulatory impediments, and we expect it will also bolster regional political stability,” said the note.
