Fitch Ratings downgrades Morocco’s rating

This annotation is justified by the impact of the health crisis due to the coronavirus on the Moroccan economy and on public and external finances, indicates the New York rating agency. According to analysts at Fitch Ratings, a decline in budget revenues and a historically significant contraction in GDP will lead to a significant increase in public debt while the consequences on industry and tourism will impact the heavy deficit of the current account and of the external debt. clear.

According to experts, the impact of the pandemic on the budget and plans to extend social services in a context of unemployment could worsen debt stabilization efforts, despite government efforts.

The American agency Fitch Ratings forecasts an increase to 7.9% of the budget deficit of GDP in 2020 against 6.5% in 2021 and 4.1% (excluding privatization revenues) in 2019. Regarding growth prospects, the agency says they will experience a major economic contraction with a GDP down 6.5%, due to disruptions related to the health crisis and a two-year drought.

This annotation comes a few days after the downgrade of Morocco’s sovereign rating by Standard & Poor’s. This American rating agency lowered the outlook from stable to negative, while preserving Morocco’s BBB-.

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