Morocco Becomes Africa’s Only Investment-Grade Eurobond Issuer After S&P Upgrade
S&P Global Ratings has restored Morocco’s investment-grade status, making it the only African sovereign Eurobond issuer with such a ranking.
S&P Global Ratings has restored Morocco’s investment-grade status, making it the only African sovereign Eurobond issuer with such a ranking.
The agency on Friday upgraded Morocco’s long-term foreign-currency rating to BBB- from BB+, with a stable outlook, placing it on par with Hungary and Oman.
Morocco had lost its investment-grade status in 2021 after the pandemic and drought battered its tourism- and agriculture-dependent economy, according to Bloomberg.
“Morocco’s recent economic performance and its outlook are supported by its policy mix and strong structural socioeconomic and budgetary reform momentum,” S&P wrote in a statement.
The rating boost is expected to help Morocco attract foreign direct investment to drive growth and ease unemployment in its $154 billion economy. S&P projects a gradual decline in the country’s debt-to-GDP ratio as higher revenue narrows the fiscal deficit.
Moody’s and Fitch still rate Morocco one notch below investment grade but maintain stable outlooks. Even with these ratings, Morocco successfully issued a €2 billion bond in March that drew more than three times that amount in bids, with yields falling about 40 basis points since.
The central bank expects economic growth to accelerate to 4.6% this year, with inflation running below 1% since April after topping 10% in early 2023.
