Fitch today lowered Morocco’s credit rating to “high risk”, saying that the Coronavirus has severely damaged the North African country’s financial conditions, according to “Reuters”.
Downgrading by one degree from BBB- to BB + is not an easy matter for the government, as it means that the rating from two of the three major credit rating agencies is in the highest risk category, which may lead to higher borrowing costs.
“The authorities aim to curb the deterioration in public finances, but the ongoing impact of the pandemic on the budget and plans to expand social services amid rising unemployment will complicate efforts to stabilize debt,” Fitch said.
Moody’s has never ranked Morocco in the investment-worthy category for more than two decades, while Standard & Poor’s places it at the lowest level in the investment-worthy category, but this month it nominated Morocco to downgrade.
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