Moody's Boosts Morocco's Credit Rating Outlook
The Moroccan Ministry of Economy and Finance has announced that Moody's Ratings has upgraded the country's credit outlook from 'Stable' to 'Positive' for its long-term debt issuances, both in foreign and local currencies. This adjustment reflects a significant shift in the economic and financial strength of Morocco, suggesting a brighter future for its credit profile.
According to the ministry's statement, Moody's report highlights that these 'positive prospects' are indicative of Morocco's gradual economic improvements. If this positive trend continues, there is a strong possibility that Morocco's credit rating could be raised further. Moody's, a global leader in credit ratings, specializes in assessing the creditworthiness of countries, companies, and financial institutions, providing crucial insights for investors regarding the risks associated with their investments.
Moody's supports this revised outlook by noting an improvement in the country's economic growth expectations, driven by increased investment rates and ongoing structural reforms aimed at transforming the economy and enhancing its growth potential. Despite the fact that Morocco's per capita income remains below that of higher-rated countries, the agency acknowledges that a combination of more sustainable growth, increased economic diversification, and high investment levels suggests a structural improvement in Morocco's growth trajectory.
Notably, the agency observed that non-agricultural growth has accelerated consistently over recent years, with expectations that it will surpass 5% by 2025. This shift indicates a reduction in reliance on the volatile agricultural sector, paving the way for more stable and predictable growth in the future.
Furthermore, Moody's anticipates that the relatively high growth momentum will continue, backed by substantial public and private investments, particularly in transportation, logistics, energy, and water sectors. The continuation of reforms aimed at strengthening the business climate will also attract more investments. The report emphasizes that these projects will enhance logistical connectivity, alleviate climate-related constraints, and bolster the economy's competitiveness. Additionally, industrial policies are expected to foster the development of high-value-added sectors and enhance export capacities.
Moreover, improvements in budgetary performance are considered another factor supporting this positive outlook, which could further bolster the country's economic stability.
As reported by thevoice.ma.
