S&P Global Ratings Issues BBB− Credit Rating to Casablanca, Morocco
On October 22, 2023, S&P Global Ratings, the financial rating agency that is part of the American S&P Global group, assigned its inaugural credit rating to the city of Casablanca, located in western Morocco. The city received a long-term rating of BBB− and a short-term rating of A−3, with a stable outlook, which aligns precisely with the sovereign rating of Morocco.
S&P assessed Casablanca's intrinsic credit profile at bbb+, placing it two notches above the national rating. This favorable rating is attributed to the municipality's substantial revenue streams, consistent budget surpluses, and controlled debt levels. However, S&P capped the final rating for the city at the sovereign level due to the dependency of Moroccan local governments on state transfers and shared taxes.
Looking ahead, S&P forecasts an increase in Casablanca's operating surplus, projected to rise from 19% of revenues in 2025 to 25% by 2028 over the next four fiscal years. During the same period, the city's direct debt is expected to decrease from 66% to 46% of operating revenues, with S&P anticipating only limited new borrowing by 2028.
Investment Plans and Future Borrowing
The communal action plan for Casablanca, which spans from 2023 to 2028, outlines an ambitious investment program worth 39.6 billion dirhams, alongside a new borrowing plan of 1.5 billion dirhams. This plan also includes achieving an international rating as one of the municipality's primary objectives. S&P has indicated that a new financing program could be developed beyond 2028, although the timeline for any potential issuance remains to be determined. Additionally, the World Bank is set to disburse 200 million dirhams to the city in 2026 and another 80 million in 2027 as part of loans granted to Casablanca in previous years.
Furthermore, S&P highlighted that Moroccan local governments have access to the domestic bond market since the reforms initiated in 2022. The Casablanca-Settat region, which operates as a distinct entity from the city, successfully raised one billion dirhams in 2026 without any state guarantees. On March 27, 2026, S&P Global Ratings reaffirmed Morocco's sovereign ratings at BBB− for the long term and A−3 for the short term, both in foreign currency and local currency, maintaining a stable outlook.
It is important to note that the details of S&P's report are exclusive to subscribers of the agency's platform, and I was unable to access the document. However, the dates and ratings (BBB−, A−3, stable outlook) have been confirmed by multiple reliable sources. The sovereign rating from March 27 is verified through the Moroccan Ministry of Economy and Finance. In contrast, the intrinsic profile of bbb+, ratios, borrowing projections, communal action plan figures, and regional issuance are only known through press articles and require validation against the original S&P text before publication. Due to the absence of the original text, this article does not include any direct quotes from S&P.
As reported by barlamane.com.
