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S&P downgrades Morocco’s rating

The Standard & Poor’s rating agency downgraded Morocco to BBB- with a negative outlook in its last assessment.

In October 2019, the Kingdom’s rating was BBB- with a stable outlook, recalls S&P. Morocco’s outlook has been revised to “negative” due to increased debt and external needs during the Covid-19 pandemic, S&P says.

For the agency, the main reason for this revision is the budget situation and the external debt situation, which will deteriorate significantly more than expected “due to the severe economic repercussions of the coronavirus”.

In addition, Standard & Poor’s expects the budget deficit to reach around 7.7% of GDP in 2020, with a net public debt exceeding 60% of GDP and a “significant” increase in contingent liabilities linked to debt guarantees granted to the private sector.

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