On Friday, October 23rd, Fitch Ratings downgraded Morocco’s credit rating to “high risk”, noting that the Covid-19 virus had a tremendous impact on the economy of the North African country.
A one-degree reduction of BBB- to me BB + The easy thing for the government, as it means that the rating from two of the three major credit rating agencies has become in the most risky category, which may cause an increase in borrowing costs..
Fitch stated that “The authorities aim to limit the deterioration in public finances, but the continuing impact of the pandemic on the budget and plans to expand the scope of social services amid rising unemployment will complicate efforts to stabilize debt.“.
