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Rabat – The international rating agency Standard & Poor’s (S&P) expects the Moroccan economy to pick up between 2015 and 2018.
The US-based rating agency released a recent report entitled “Middle East and North Africa sovereign rating trends mid-year 2015” on Tuesday. The report revealed that the overall sovereign creditworthiness in the Middle East and North African (MENA) region is unchanged, since February 2015.
“We have incorporated the sharp drop in oil prices since mid-2014 in the ratings and there have been no further downgrades since those on Bahrain and Oman in February 2015,” it added.
However, S&P said it expects the MENA net hydrocarbon importers, Egypt, Jordan, Lebanon and Morocco, to see a pick-up in economic growth in 2015-2018, compared with the recent past.
“Egypt, Jordan, Lebanon, Morocco and Sharjah should benefit from lower oil prices through the boost to their terms of trade,” the report said.
“This will likely ease inflationary pressures and reduce current account deficits. Economic growth will also likely be boosted by increased household spending due to lower energy bills, which could also support investment,” the report explained.
It went on to add that Morocco is rated investment grade with the rating “BBB.”
On the other hand, S&P said, “the average rating for the hydrocarbon-endowed sovereigns of Abu Dhabi, Bahrain, Kuwait, Oman, Qatar and Saudi Arabia is currently close to ‘A+.’”
S&P’s Director Trevor Cullinan said in a video posted on YouTube that, “Morocco in particular could have strong growth this year. This is due to the government’s industrial policy, which benefits from the automotive and the electronic sectors.”
