Highlights

"The positive outlook reflects our expectations that Morocco will build on its recent track record of implementing socio-economic and fiscal reforms, paving the way for inclusive growth and reduced budget deficits," the agency also stresses.

S&P Global Ratings believes that the gradual transformation of the economy's structure will continue, strengthening growth prospects, economic stability and public finances. The Moroccan economy will also benefit from Morocco's increased export capacity and the development of major investment projects in connection with the organization of the African Cup of Nations in 2025 and the Football World Cup in 2030. The agency also pointed out that Morocco has embarked on a far-reaching reform of the Public Establishments and Enterprises (PEE) sector, which is likely to reduce the financial burden and potential risks on the budget, as well as market distortions, in the interests of better development of the private sector.

The agency also pointed out that Morocco benefits from immediate access to IMF resources, notably via the Flexible Credit Line (FCL), which provides the country with financial resources that it can draw on if necessary. It also pointed out that Morocco benefits from the IMF's Resilience and Sustainability Facility, which aims to support the country in its efforts to address vulnerabilities and strengthen its resilience to climate change.

In its assessment report, S&P Global Ratings points out that outstanding debt remains above pre-pandemic levels, but that its structure remains favorable, and that exposure to interest rate, refinancing and exchange rate risks remains relatively limited. The agency added that foreign currency debt is essentially concessional, representing less than a quarter of the Treasury's total debt, and that international bond issues account for around a third of total foreign currency debt, with a fairly fluid repayment profile.

According to S&P, investment-friendly actions include prioritizing investment in the water and energy sectors. S&P also highlighted the measures taken by the government to alleviate water shortages and improve water use efficiency (new dams, desalination and recycling plants, etc.).

In terms of outlook, the agency expects FDI flows to increase gradually over the coming years, as the implementation of structural economic reforms makes Morocco more attractive to investors. In this context, it recalled the confidence enjoyed by our country from the international financial community, as reflected recently by the success of the bond issue carried out in March 2023 on the international financial market and access to the IMF's flexible credit line.