Fitch Ratings Assesses Morocco’s Credit Rating

Fitch Ratings confirmed Tuesday Morocco’s ability to meet long-term foreign-currency debt obligations at a ‘BB+’ rating with a Stable Outlook. Despite high government debt and governance concerns, Morocco maintains a solid economic foundation supported by sound policies and manageable debt levels.

In 2023, Morocco saw economic growth at 3.4%, driven by strong non-agricultural sectors. Growth is projected to slow in 2024 due to rainfall limitations, but is expected to normalize in the coming years. The central government deficit is also improving, with a forecasted decrease in 2024.

Despite increasing government debt, Morocco’s risks from refinancing remain low, with most debt being long-term and fixed-rate. Foreign reserves are at a comfortable level of USD 37.3 billion, providing a cushion for external payments.

While challenges in governance persist, Fitch acknowledges Morocco’s stable political environment. Potential rating changes could stem from fiscal management or economic reforms that boost growth prospects.