Moody's Upgrades Morocco's Credit Rating Outlook
The Ministry of Economy and Finance has announced that Moody's Ratings has upgraded the outlook associated with Morocco's credit rating from "Stable" to "Positive" for long-term debt issuances in both foreign and local currencies. This significant change reflects a growing confidence in Morocco’s economic stability and financial strength.
According to the ministry's statement, Moody's report emphasizes that this positive outlook is indicative of a gradual improvement in Morocco’s economic and financial power, which is expected to further bolster its credit profile. Should this positive trend continue, it may pave the way for an actual upgrade in the country's credit rating.
Moody's, a globally recognized ratings agency, specializes in evaluating the creditworthiness of countries, corporations, and financial institutions. It analyzes the ability of borrowers to repay their debts, providing credit ratings that help investors assess risk levels before making investment decisions.
The agency's review of Morocco's outlook was driven by improved economic growth forecasts, fueled by rising investment rates and ongoing structural reforms aimed at transforming the economy and enhancing its growth potential. Despite the fact that per capita income still lags behind that of higher-rated countries, Moody's recognizes 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 pointed out that non-agricultural growth has consistently accelerated in recent years, with projections indicating it will exceed 5% in 2025. This reflects a reduced dependency on volatile agricultural production, facilitating a more stable and predictable growth outlook for the future.
Moreover, Moody's anticipates a continuation of relatively high growth dynamics, bolstered by significant public and private investments, particularly in transportation, logistics, energy, and water infrastructure, as well as ongoing reforms aimed at solidifying the business environment to attract further investments.
The report highlights that these initiatives will enhance logistical connectivity, alleviate certain climate-related constraints, and boost economic competitiveness. In addition, industrial policies are expected to foster the development of high value-added sectors and strengthen export capacities.
Furthermore, improvements in budgetary performance are noted as another factor supporting this positive outlook. These enhancements are expected to contribute to sustainable economic growth and stability, marking Morocco's potential ascent in credit ratings in the international financial arena.
As reported by thevoice.ma.
