Fitch Ratings downgrades three Moroccan banks following sovereign downgrade

American credit rating agency Fitch Ratings has downgraded the Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDRs) of three Morocco-based banks.

In a statement published, Tuesday, Fitch Ratings announced the downgrade of the IDRs of Attijariwafa Bank (AWB), Bank of Africa (BOA) and Credit Immobilier Et Hotelier's (CIH) to 'BB' with a Stable Outlook from 'BB+' with a Negative Outlook.

Fitch Ratings has also «revised down the three banks' Support Rating Floors (SRFs) to 'BB' from 'BB+', while affirming their Support Ratings at '3'».

The agency explains that the downgrade reflects «the weaker ability of the Moroccan sovereign to provide support to the banks in case of need, due to widening fiscal deficits and a rising GG debt/GDP».

The rating comes as Fitch Ratings downgraded, in October, Morocco’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'BB+' from 'BBB-' with a stable outlook.