Moody's Changes Morocco's Outlook To Stable From Negative, Affirms Ba1 Rating

Moody's announced Friday that it changed Morocco's outlook to stable from negative, but affirmed its credit rating at 'Ba1.'

The rating agency said the change reflects Morocco's economic recovery in real GDP to pre-pandemic levels.

The change is a result of its economic resilience and the build-up of significant foreign exchange reserves, which acts as a buffer to absorb the effects of the global commodity price shock, it said.

Moody's said a sustained reduction in debt levels and growth in the non-agricultural sector would lead to an upgrade in Morocco's credit rating.

But a continued fiscal deterioration and the inability to stabilize the debt ratio could result in a downgrade, it warned. -