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Standard & Poor’s downgraded Morocco’s rating

US rating agency Standard & Poor’s (S&P) downgraded Morocco’s long-term foreign and local currency ratings to BB+ from BBB-, citing the country’s economic contraction and growing budget deficit.

The new rating has a stable outlook. S&P previously had a negative view of Morocco’s rating.

“Fiscal consolidation between 2021 and 2024 will likely be slow,” S&P said in a statement. They also expressed concern about an increase in state guarantees, which “could further exacerbate fiscal pressure.”

The downgrade allows S&P to align with Moody’s and Fitch, which also give Morocco its highest non-investment grade rating.

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