S&P Cuts Morocco Debt to Junk
Posted on 04/02/2021
Ratings agency S&P lowered Morocco’s long-term foreign and local currency ratings by one notch to BB+ from BBB-, citing the country’s economic contraction and growing budget deficit. S&P is concerned over an increase in state guarantees, which could further exacerbate budgetary pressure. Steep drops in tax revenue can cause stress in the country’s fiscal deficit.
“Budgetary consolidation over 2021-2024 is likely to be slow,” S&P said in a statement.
Fitch Ratings cut Morocco’s credit rating to “junk” in October 2020, citing COVID-19 for savaging the north African country’s finances.
Moody’s has never classed Morocco as investment-grade in over two decades.
Morocco’s Central Bank, Bank Al-Maghrib, has official currency reserves totaled MAD 307.7 billion (US$ 34 billion) up to March 18, 2021, recording a 0.1% increase on a weekly comparison and a 23.8% increase on a year-to-year basis.