Moody's Ratings has revised the outlook on Morocco’s long-term foreign and local currency debt rating to “positive” from “stable,” while affirming the country’s Ba1 rating, Morocco’s Ministry of Economy and Finance said.
In a statement, the ministry said Moody’s decision reflects a gradual strengthening of Morocco’s economic and fiscal fundamentals, which could lead to a rating upgrade if the current momentum continues.
According to the agency’s assessment, stronger economic growth, increasing diversification and sustained investment are contributing to a structural improvement in Morocco’s growth profile, despite the country’s lower per capita income compared with higher-rated economies.
Moody’s highlighted that non-agricultural growth has accelerated in recent years and is expected to exceed 5% in 2025, reducing the economy’s dependence on the more volatile agricultural sector and helping ensure more stable growth.
The agency also expects Morocco to maintain relatively strong growth momentum, supported by significant public and private investment in sectors such as transport, logistics, energy and water infrastructure, alongside reforms aimed at improving the business environment and attracting investment.
Improving fiscal performance was also cited as a key factor behind the positive outlook, with Moody’s saying stronger budget results could help contain the country’s debt burden over the medium term despite continued pressures from social spending and development needs.
The rating agency added that Morocco’s public debt ratio could decline more than expected if fiscal consolidation continues and economic growth remains robust.
Moody’s Ba1 rating, the highest level within the agency’s speculative-grade category, indicates obligations with moderate to substantial credit risk but signals potential for improvement if economic and fiscal trends remain favourable.
