U.S.-based credit rating agency Standard & Poor’s (S&P) has announced the reinstatement of Morocco’s sovereign debt rating to Investment Grade, a status the Kingdom lost in 2021 due to the repercussions of the COVID-19 pandemic.
The decision followed an assessment mission carried out by the agency in Morocco this September, during which it considered that the country’s improving economic conditions and ongoing reforms supported the upgrade of Morocco’s rating.
This marks the second major step forward in less than two years, after S&P revised Morocco’s outlook from stable to positive in March 2024, paving the way for the recovery of the new investment grade.
According to financial experts, these successive upgrades are particularly significant given the challenging international environment, where many countries, including advanced economies, have seen their sovereign ratings downgraded amid financial pressures and global economic volatility.
The same sources stressed that Morocco’s progress reflects the resilience of its economy and the solidity of its macroeconomic fundamentals, which they attribute to the wide-ranging reforms launched under the leadership of King Mohammed VI.
The decision also underscores Morocco’s continued commitment to maintaining fiscal stability at a time when the global economy faces major challenges and heightened uncertainty.
Regaining the Investment Grade brings Morocco several advantages, most notably easier access to international financial markets under more favorable conditions, which will help reduce borrowing costs.
The new rating further strengthens the confidence of investors and foreign partners, serving as a positive signal of economic and financial stability in the Kingdom.
It is also expected to boost Morocco’s attractiveness to foreign direct investment, particularly capital seeking safe and stable environments, as the country positions itself as a major hub ahead of hosting the 2030 FIFA World Cup.
In this context, Morocco has opened the door to significant inflows of foreign investment, especially following the launch of large-scale projects such as stadium construction, infrastructure development, and related initiatives including hotels and other tourism facilities.
