Moody’s Affirms Morocco’s Credit Rating as Ba1 with Stable Outlook
Moody’s Ratings recently confirmed Morocco’s Ba1 long-term issuer and senior unsecured debt ratings, with a stable outlook. The rating reflects the country’s institutional strengths and solid external position, despite socio-economic challenges.
The report noted that Morocco faces obstacles in fiscal consolidation due to low-income levels and societal demands, hindering progress compared to other similarly rated countries. However, the stable outlook anticipates economic and social reforms to enhance resilience against shocks and maintain a stable debt burden.
Despite spending pressures from social security reforms and infrastructure projects, Morocco’s strong institutions and proven policy effectiveness indicate the kingdom’s ability to manage crises during external shocks.
Morocco’s monetary and macroeconomic policies, guided by Bank Al-Maghrib, have bolstered the credibility of its monetary policy with a cautious approach to foreign exchange rate liberalization. The report forecasts stable government debt at around 65% of GDP, with gradual improvements focusing on economic diversification and renewable energy to address social disparities.
Overall, the outlook remains positive for Morocco, with continued efforts towards economic growth and job creation despite persistent challenges.