Fitch trims Morocco

Fitch Ratings said it downgraded Morocco’s long-term local- and foreign-currency issuer default ratings to BB+ from BBB-. The agency also downgraded the country’s senior unsecured rating to BB+ from BBB-.

“The downgrade reflects the severe impact of the coronavirus pandemic on Morocco’s economy and public and external finances. A fall in fiscal revenues and a historically large GDP contraction will prompt a sizeable rise in government debt, while the hit to manufacturing and tourism will cause a significant worsening in the current account deficit and net external debt from already high levels, Fitch said in a press release.

Fitch’s forecast considers offsetting measures envisaged by the authorities through a new solidarity levy on personal income and business profits, expenditure reallocation, payroll-management measures and increased partnership with the private sector for public investment, the agency said.

The outlook is stable.

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