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Leading credit rating agency Fitch Ratings has affirmed Morocco's Long-Term Issuer Default Rating (IDR) at "BB+." The agency also maintained a Stable Outlook on the rating in a rating action published on Tuesday, October 8.
This indicates that Fitch still deems Morocco's creditworthiness as belonging to the «speculative» category but maintains a «positive outlook». The Stable Outlook on the latest rating suggests nonetheless that Fitch expects Morocco's creditworthiness to remain stable in the near term.
Fitch's recent rating reflects Morocco's «sound macroeconomic policies, strong official creditor support, favorable debt profile, and comfortable liquidity buffers». «These strengths are balanced by lower development and governance indicators compared with peers, high government debt, and the economy's exposure to adverse weather conditions», Fitch explained in a statement.
Fitch further explains that Morocco's economy is projected to grow at a moderate pace in the coming years, driven by non-agricultural sectors and a gradual recovery in agriculture. «In 2023, Morocco's economy grew by 3.4% (2022: 1.5%), driven by strong non-agricultural sector performance and a rebound in agricultural output following a sharp contraction in 2022», the statement details.
Fitch expects growth to slow to 3.0% in 2024 as limited rainfall stunts agricultural production. «We expect growth to average 3.5% over 2025-2026 on the back of normalizing agricultural output and sustained non-agricultural sector performance», Fitch added.
In the same document, Fitch explains that the Moroccan government is committed to fiscal consolidation and has taken steps to reduce subsidies and increase revenue.
Despite high debt levels, Morocco's external resilience is supported by strong foreign reserves, the agency concluded. The country's political stability and sound policy framework have contributed to its macroeconomic stability, it added.
