(Bloomberg) -- S&P cut Morocco's long-term foreign and local currency ratings by one level to BB+ from BBB-, citing the country's economic contraction and growing budget deficit.
The new rating has a stable outlook. S&P previously had a negative outlook on Morocco's rating.
“Budgetary consolidation over 2021-2024 is likely to be slow,” S&P said in a statement. It also expressed concern over an increase in state guarantees, which “could further exacerbate budgetary pressure.”
The downgrade brings S&P in line with Moody's and Fitch, which also give Morocco their highest non-investment grade rating.
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