S&P Global Ratings agency maintained Morocco’s ratings at BBB-/A-3 while upgrading its outlook from negative to stable. The stable outlook reflects expectation that fiscal consolidation will continue over the next few years, which will help stabilize debt. “We could raise the rating if budgetary consolidation prospects materially improve or the ongoing transition toward a more flexible exchange rate that targets inflation significantly bolsters Morocco’s external competitiveness and ability to withstand macroeconomic external shocks,” said S&P in a note. The agency expected GDP growth in Morocco to stand at 2.8% in 2019, reflecting a slowdown in Europe, as well as decelerating growth in the country’s agricultural output. The upgrade of Morocco’s outlook will help it benefit from low rates as it plans to issue a sovereign bond this year estimated by the central bank at 1 billion dollars.

Source: The North Africa Journal October 07, 2019 21:56 UTC