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As foreign investors warn over Israel’s future, ratings firm accused of anti-Israel bias says it’s not worried — for now
(JTA) — As much of the financial world increasingly eyes political developments in Israel with concern, a company that specializes in assessing investments based on social responsibility criteria made a special announcement Wednesday in which it declared Israel “a low-risk country.”
That designation is both a signal to investors that they are unlikely to get entangled in human rights abuses or other scandals if they put their money in Israel, and a reassurance intended for pro-Israel advocates who have accused the company of bias against Israel.
The announcement from the multibillion-dollar Chicago-based financial research firm Morningstar is the latest entry in a debate about how companies around the world should regard the Israeli-Palestinian conflict. One side says that Israel should be treated as regular Western democracy and the other says that Israel’s treatment of the Palestinians should put the country in the class of authoritarian regimes.
But another debate about Israel’s investment worthiness has emerged in recent months following the election of a new Israeli government led by Benjamin Netanyahu, whose slim parliamentary majority relies on the support of parties with far-right platforms.
Netanyahu, who is on trial for corruption, has vowed to overhaul Israel’s judicial system and rein in the independence of the courts. Many financial analysts consider a weakened judiciary a red flag for investors.
Sarah Wirth, a spokesperson for Morningstar, said that its analysis designating Israel a low-risk country does not yet account for recent developments in Israel.
“Some of the changes developing in Israel may impact their Country Risk Rating once we incorporate them into our analysis,” Wirth wrote in an email to the Jewish Telegraphic Agency in reference to the judicial reform plan.
The latest warning about Israel’s place in the global economy emerged Friday with the leak of an internal report written by JPMorgan, one of the largest banks in the world.
The report compared Israel to Poland, which passed a similar judicial reform in 2016 and saw a downgrade to its credit rating, which was a major blow because national credit ratings can either attract or drive away investments from abroad.
JPMorgan analysts wrote that Israel’s credit rating still “stands comfortably in the investment grade bucket” but that Netanyahu’s plan could cause it to go down.
The report adds to a warning by another Wall Street giant, Goldman Sachs, which said last week that the Israeli shekel could be affected by “growing concern over domestic political developments.”
“The five most recent elections over the past three-year period have had typically limited read-through to financial markets,” Goldman Sachs economist Tadas Gedminas wrote in a report. “This is not to say that the current situation could not have a more meaningful impact this time around, and we will closely monitor ongoing developments.”
Netanyahu has rejected criticism of his judicial plan by saying that the proposed reforms are being misrepresented by his critics and that they would merely bring Israel’s courts in line with courts in other Western countries. The plan would limit the ability of the Supreme Court to rule laws and government actions as unconstitutional, give the government control over the appointments of new judges and end the independence of the position of legal advisor across various government offices, among other measures.
Netanyahu has also said that regardless of the warnings by analysts, international investors are excited about Israel and eager to acquire equity in Israeli companies. His latest pronouncement came from France where he said he met with 60 local business leaders.
“What they’re saying about investors running away is nonsense,” Netanyahu said. “We want to increase our investments in Israel.”
Some of Israel’s own business leaders are concerned enough about the country’s direction that they are choosing to decamp. The CEO of tech company Verbit, which was valued at $2 billion in 2021, announced Tuesday that he would leave the country to avoid paying millions in taxes as a protest of the judicial overhaul plan.
“Over the past few years, I’ve paid tens of millions of dollars in taxes and my company has paid hundreds of millions in taxes,” Verbit CEO Tom Livne said on Israel’s Channel 12. He encouraged others in Israel’s vaunted tech sector to do the same.
Livne’s announcement comes about a week after two Israeli tech firms, including one that was valued at $3.7 billion in 2021, said they would withdraw assets from Israel for the same reason.
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Report: Iran Considers Removing Hezbollah Leader Naim Qassem
Lebanon’s Hezbollah Chief Naim Qassem gives a televised speech from an unknown location, July 30, 2025, in this screen grab from video. Photo: Al Manar TV/REUTERS TV/via REUTERS
i24 News – Iran is reportedly dissatisfied with the performance of Hezbollah Secretary-General Naim Qassem and is preparing to reorganize the group’s leadership, potentially removing him from his position, according to a report by Emirati outlet Erem News citing senior Lebanese diplomatic sources.
The report claims Tehran views Qassem as “unsuitable to lead Hezbollah at this critical stage,” arguing that he has failed to meet the leadership standards set by his predecessor, longtime Hezbollah chief Hassan Nasrallah.
Iranian officials are said to believe Qassem lacks sufficient political acumen and hold him responsible for the deterioration in relations between Hezbollah and the Lebanese state.
According to Erem News, Iran’s Foreign Minister Abbas Araghchi is expected to oversee preparations for restructuring Hezbollah’s internal leadership during an upcoming visit to Beirut.
The visit is intended to assess the organization’s internal climate through direct meetings with senior Hezbollah figures and influential operatives.
“The Iranian minister seeks to monitor the general climate within Hezbollah and convey an accurate picture of the internal situation to decision-makers in Tehran,” the report said, adding that the findings would be used to inform “crucial decisions regarding anticipated changes at the head of the organization, most notably the fate of Naim Qassem.”
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Iran’s Foreign Minister to Visit Russia and Belarus, Foreign Ministry Says
Iranian Foreign Minister Abbas Araqchi speaks during a meeting with foreign ambassadors in Tehran, Iran, July 12, 2025. Photo: Hamid Forootan/Iranian Foreign Ministry/WANA (West Asia News Agency)/Handout via REUTERS
Iran‘s Foreign Minister, Abbas Araqchi, will visit Russia and Belarus in the next two to three days, foreign ministry spokesperson Esmail Baghaei said on Sunday.
Iranian President Masoud Pezeshkian met Russian counterpart Vladimir Putin in Turkmenistan on Friday.
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Ukraine Drops NATO Goal as Trump Envoy Sees Progress in Peace Talks
Ukraine’s President Volodymyr Zelenskiy looks on at a stakeout during the 80th United Nations General Assembly in New York City, U.S., September 23, 2025. REUTERS/Kylie Cooper
President Volodymyr Zelensky offered to drop Ukraine’s aspirations to join the NATO military alliance as he held five hours of talks with US envoys in Berlin on Sunday to end the war with Russia, with negotiations set to continue on Monday.
Trump‘s envoy Steve Witkoff said “a lot of progress was made” as he and Trump‘s son-in-law Jared Kushner met Zelensky in the latest push to end Europe’s bloodiest conflict since World War Two, though full details were not divulged.
Zelensky’s adviser Dmytro Lytvyn said the president would comment on the talks on Monday once they were completed. Officials, Lytvyn said, were considering the draft documents.
“They went on for more than five hours and ended for today with an agreement to resume tomorrow morning,” Lytvyn told reporters in a WhatsApp chat.
Ahead of the talks, Zelensky offered to drop Ukraine’s goal to join NATO in exchange for Western security guarantees.
The move marks a major shift for Ukraine, which has fought to join NATO as a safeguard against Russian attacks and has such an aspiration included in its constitution. It also meets one of Russia’s war aims, although Kyiv has so far held firm against ceding territory to Moscow.
“Representatives held in-depth discussions regarding the 20-point plan for peace, economic agendas, and more. A lot of progress was made, and they will meet again tomorrow morning,” Witkoff said in a post on X.
The talks were hosted by German Chancellor Friedrich Merz, who a source said had made brief remarks before leaving the two sides to negotiate. Other European leaders are also due in Germany for talks on Monday.
“From the very beginning, Ukraine’s desire was to join NATO, these are real security guarantees. Some partners from the US and Europe did not support this direction,” Zelensky said in answer to questions from reporters in a WhatsApp chat.
“Thus, today, bilateral security guarantees between Ukraine and the US, Article 5-like guarantees for us from the U.S., and security guarantees from European colleagues, as well as other countries — Canada, Japan — are an opportunity to prevent another Russian invasion,” Zelensky said.
“And it is already a compromise on our part,” he said, adding the security guarantees should be legally binding.
Russian President Vladimir Putin has repeatedly demanded Ukraine officially renounce its NATO ambitions and withdraw troops from the about 10% of Donbas which Kyiv still controls. Moscow has also said Ukraine must be a neutral country and no NATO troops can be stationed in Ukraine.
Russian sources said earlier this year that Putin wants a “written” pledge by major Western powers not to enlarge the US-led NATO alliance eastwards – shorthand for formally ruling out membership to Ukraine, Georgia, Moldova and other former Soviet republics.
Sending Witkoff, who has led negotiations with Ukraine and Russia on a US peace proposal, appeared to be a signal that Washington saw a chance of progress nearly four years after Russia’s 2022 invasion.
Under pressure from Trump to sign a peace deal that initially backed Moscow’s demands, Zelensky accused Russia of dragging out the war through deadly bombings of cities and Ukraine’s power and water supplies.
A ceasefire along the current front lines would be a fair option, he added.
“CRITICAL MOMENT”
Germany’s Defense Minister Boris Pistorius said it was a “good sign” Trump had sent his envoys while fielding questions in an interview with the ZDF broadcaster on the suitability of Witkoff and Kushner, two businessmen, as negotiators.
“It’s certainly anything but an ideal setup for such negotiations. That much is clear. But as they say, you can only dance with the people on the dance floor,” Pistorius said.
On the issue of Ukraine’s offer to give up its NATO aspirations in exchange for security guarantees, Pistorius said Ukraine had bitter prior experience of relying on security assurances. Kyiv had in 1994 agreed to give up its Soviet-era nuclear arsenal in exchange for territorial guarantees from the US, Russia and Britain.
“Therefore, it remains to be seen to what extent this statement Zelensky has now made will actually hold true, and what preconditions must be met,” Pistorius said.
“This concerns territorial issues, commitments from Russia and others,” he said, adding mere security guarantees, especially without significant US involvement, “wouldn’t be worth much.”
Britain, France and Germany have been working to refine the US proposals, which in a draft disclosed last month called for Kyiv to cede more territory, abandon its NATO ambitions and accept limits on its armed forces.
European allies have described this as a “critical moment” that could shape Ukraine’s future, and sought to shore up Kyiv’s finances by leveraging frozen Russian central bank assets to fund Kyiv’s military and civilian budget.