Morocco Maintains BB+ Credit Rating as S&P Cites Economic Reforms

According to the rating agency, this latest assessment was mainly motivated by the kingdom’s implementation of new economic and structural reforms, which should drive more inclusive economic growth and a gradual reduction in budget deficits.

This performance was also maintained thanks to the government’s implementation of measures to cushion the rise in prices for households and businesses, it is explained, specifying that budgetary efforts have been made through the compensation fund and an emergency plan for the benefit of the agricultural sector. Other actions by the executive have also led to this rating, the same source said.

In its forecasts, S&P estimates that "the surge in global energy and food prices as well as the impact of the drought will weigh on Morocco’s growth in 2022." However, the agency expects growth of 1.4%, up from the forecasts of BAM (0.8%) and HCP (1.3%).