Four previously stable Moroccan banks are now in negative outlook. Moody’s has just confirmed the Ba1 rating of the long-term deposits of these banks.
Attijariwafa bank (AWB), Groupe Banque Centrale Populaire (GBCP), Bank of Africa – BMCE Groupe (BoA) and Crédit du Maroc (CdM), were analyzed by Moody’s Investors Service. As a result, the outlook for AWB and GBCP’s long-term deposit notes to be stable turned negative. As for the BoA, its outlook remained negative on long-term deposit and issuer ratings. As far as CdM is concerned, its outlook is almost stable on term deposit quotes.
This situation has shown the level of government to expand its financial support to Moroccan banks, which will be of great use in the next 12 to 18 months. Moreover, these not very optimistic prospects on the rating of the Moroccan government prove how much public debt has increased in the kingdom and how enormous the risks of contingent liabilities of the debts of public enterprises, and of credit guarantees are recently granted in the fight against the coronavirus.
In this sense, Moody’s suggests government support for three Moroccan banks (AWB, GBCP and BoA), while increasing by two to three notches, the aid included in the ratings of long-term deposits. In addition, negative forecasts take into account all the downside risks that the impacts of the health crisis present on autonomous credit profiles.