Rabat- Standard & Poor's revised Morocco’s rating outlook from "negative" to “stable" on Friday, while confirming the notes "BBB-/A-3."
Rabat- Standard & Poor’s revised Morocco’s rating outlook from “negative” to “stable” on Friday, while confirming the notes “BBB-/A-3.”
The improvement of the “perspective” of Morocco’s credit quality has its origin in particular in the reduction of the budget deficits and current account, which was supported by the implementation of reforms to improve growth, competitiveness and productivity while controlling the costs of compensation, said the rating agency according to MAP.
According to the same source, Standard & Poor’s emphasizes that Morocco’s score is also supported by strong economic growth prospects, a moderate debt burden for the government, as well as economic and social stability. The agency expects the current account deficit to reach 6.2% of GDP in 2014 and a decrease in central government deficit to 5.2 % of GDP in 2014 and 4% in 2017. The agency also expects that inflation will remain under control.
A “stable” outlook
In the light of an average crop year, Standard & Poor’s expects a moderate deceleration of economic growth in 2014 to reach 4%, thanks to the good performance of non- agricultural GDP driven particularly by the new manufacturing sectors, such as automotive, aerospace and electronics.
The rating agency added that greater levels of growth require further reforms and the implementation of other reforms in particular the labor market, the business environment and strengthening competitiveness.
After the revision of Standard & Poor’s perspective and the confirmation of Fitch ratings on April 25, 2014, Morocco is currently in the category “investment grade” with “stable” outlook.