Moody’s Assigns ’Ba1 Stable’ Rating to Morocco’s Upcoming Euro Bond Issue

Morocco’s international borrowing is set at a minimum of 1 billion euros. Its maturity will be 12 or 20 years subject to market conditions. Moody’s Investors Service initiated the rating without the rated entity making the request, Moody’s specifies.

"The issuer’s rating also reflects the country’s moderate institutional strength, recognizing the government’s consistent macroeconomic policies and fiscal reforms implemented in recent years, despite the slowdown in implementing fiscal reform to support the targeted social development strategy reflected in the 2020 budget," the rating agency said.

According to Moody’s, Morocco’s budgetary resilience in relation to the level of Treasury debt is risky but remains "affordable". The rating agency’s forecasts also indicate that Treasury debt should reach around 65% of GDP in 2019.