Moody’s Maintains Morocco’s Credit Rating, Shifts Outlook to Negative Amid Pandemic Impact

This ability to secure financing allows the kingdom to meet higher gross borrowing needs, the rating agency recalls. Regarding the downward revision of the outlook, it demonstrates the medium-term impact of the Covid-19 pandemic on the budgetary strength of the Kingdom, given, in particular, a less vigorous economic recovery than expected, and the exposure of the Moroccan economy to sectors and trade partners severely affected by the crisis, Moody’s clarified.

According to the rating agency, the still low energy prices, and a "solid foreign exchange reserve cushion" should limit external vulnerability risks. As for the outlook, the agency forecasts a gradual reduction in the budget deficit to 6.5% of GDP in 2021, and 4.5% in 2022 (compared to 7.5% in 2020).