Morocco’s Long-Term Foreign-Currency Issuer Default Rating stands at ‘BB+’ with a “stable” outlook, according to U.S.-based credit rating firm Fitch.
The agency said in its report that Morocco’s ‘BB+’ standing reflects a record of sound macroeconomic policies and favorable debt composition, along with a comfortable external liquidity buffer.
Fitch projected that GDP growth will recover in 2023 to 3%– anticipating support through higher agricultural output–and a further uptick to 3.2% in 2024, largely driven by the industrial sector.
It also predicted that inflation will decline to 5% this year overall as a result of higher interest rates, falling global commodity prices, and easing of supply shortages. In 2024, it is anticipated that inflation will fall to 3.7%.
Fitch forecasted the Central Government (CG) deficit to fall from 5.1% of GDP in 2022 to 4.9% of GDP in 2023, with a subsequent drop to 4.4% in 2024. It also projects the Current Account Deficit (CAD) to narrow from 3.4% of GDP in 2022 to 3.2% and 2.8% of GDP in 2023 and 2024, respectively.
Morocco has an Environmental, Social, and Governance (ESG) Relevance Score of 5 for both Political Stability and Rights, and for the Rule of Law, Institutional and Regulatory Quality, and Control of Corruption, as indicated by the finding.
The key determinants driving ratings included credit fundamentals, challenges to an economic rebound, inflation rate, narrowing of the fiscal deficit, magnitude and structure of debt, and governance, amongst others factors.