Sovereign rating: Fitch Ratings maintains Morocco’s “BB +”

The rating agency Fitch Ratings confirmed this Monday, December 20, Morocco’s sovereign rating at “BB +” with a stable outlook.

This rating, experts from the US agency estimated, is supported by a record of macroeconomic stability, reflected by relatively low inflation and GDP volatility before the pandemic, a moderate share of foreign currency debt in total debt. relatively comfortable general government and external liquidity reserves.

“These strengths are offset by weak development and governance indicators, high public debt and larger budget and current deficits than those of its peers,” notes Fitch, however.

It further notes that “new spending commitments will remain below the annual target of 4% of GDP by 2025, as the authorities will seek to continue reducing the deficit”.

Fitch Ratings also notes that the cost of spending related to the NMD in 2022 would be around 1.3% of GDP, noting that these expenditures “focus on the provision of social services, particularly in the areas of health and education and the expansion of social coverage ”.

It should be noted that the Board of Bank Al Maghrib (BAM) last October had reported an inflation forecast at 1.6% in 2022, and a budget deficit, excluding privatization, improving, from 7 , 6% of GDP in 2020 to 7.3% in 2021 and 6.8% in 2022.



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