Morocco : Fitch Ratings downgrades OCP’s IDR rating to BBB-

American credit rating agency Fitch Ratings has downgraded Morocco's phosphate rock miner OCP Long-term Issuer Default Rating (IDR) to 'BB+' from 'BBB-'. The outlook on OCP’s rating is 'negative', according to Fitch, which expects it to worsen in coming months.

According to the rating agency, the company’s downgraded IDR rating is due to its recent contribution to the Covid-19 special fund, created by Morocco to manage the consequences of the coronavirus crisis.

Indeed, in March OCP donated MAD 3 billion to the fund. To Fitch, this donation has «put further pressure on the financial profile of the company in 2020», in addition to «investment in a newly created alliance in the hospitality sector».

The same source indicates that OCP is the main dividend contributor among state-owned companies, and accounts for about 20% of Morocco's export revenue.