S&P has just confirmed Morocco’s investment grade rating. The country keeps the rating “BBB- / A-3”, with a stable outlook.
Moody’s had recently maintained the sovereign rating at Ba1-stable. Rating agencies believe in Morocco’s ability to rebound quickly after the health and economic crisis linked to the coronavirus. “The stable outlook reflects our view that the adverse economic and fiscal impact of the covid-19 pandemic will be contained without lasting and structural damage to credit parameters. When the impact of covid-19 is brought under control, we expect the authorities to pursue their structural economic and fiscal reforms, leading to improved economic and fiscal performance and a steady decline in the current account deficit,” commented S&P analysts.
The latter forecast growth of 0.4% in 2020 and a budget deficit of 5.2% of GDP due to measures to combat the spread of the virus and support the economy. S&P anticipates a rebound in growth to 6% in 2021.