Public debt: S&P gives Morocco a BB+/B with a stable outlook

In a press release, Standard & Poor’s (S&P) maintained its “BB+/B” rating, which the agency said reflects the effectiveness of “economic and fiscal reforms underway in Morocco, paving the way for more inclusive growth, increased domestic and foreign private investment, and a gradual reduction in the budget deficit.”

The maintenance of a stable outlook indicates that risks to the country’s issuer profile are currently measured. “The stable outlook reflects our expectation that ongoing structural reforms should support robust economic growth and help offset external and fiscal pressures,” the rating agency said.

It added: “The Moroccan economy has withstood several regional and global shocks over the past two decades while maintaining access to external and domestic financing,” the same source added.

According to S&P, Morocco’s net public debt is expected to increase and stabilize at 65% of GDP ( Gross Domestic Product) by 2026, a 13.5% increase from pre-pandemic levels.

We expect GDP per capita to increase but remain below that of other emerging economies, the rating agency anticipates.

“Morocco’s low per capita income highlights persistent structural weaknesses, including a large informal economy, wide regional income disparities, and high unemployment,” S&P said.

Finally, it should be noted that the S&P agency downgraded Turkey on Friday by reducing its debt outlook from stable to negative.


Read Also: Nadia Fettah Alaoui: Morocco Needs to Adapt Its Economy to the Growing Climate Threat

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