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Morocco: Fitch downgrades the outlook of 3 banks

The Fitch Ratings Agency has just revised the ratings of Attijariwafa bank, Bank of Africa and CIH from stable to negative, while confirming to “BB +” the rating of long-term issuer default in foreign and local currencies of the three banks.

The rating actions follow Fitch’s review of Morocco’s sovereign rating from stable to negative in anticipation of the negative impact of the Covid-19 pandemic, the agency said on its website.

Nevertheless, Fitch believes that Morocco’s propensity to support the banking sector remains “high” because of the “role it plays in financing the economy and the authorities’ desire to preserve financial stability as the country puts implement its economic development plans”.

In addition, Fitch expects the Moroccan economy to contract by 4.5% in 2020 and the general government debt to 58% of GDP in the same year, against 52.5% in 2019, in accordance with his baseline scenario.

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