S&P Upgrades Morocco’s Credit Rating to BBB-/A-3 with Stable Outlook

Standard & Poor’s has upgraded Morocco’s sovereign credit rating to 'BBB-/A-3' from 'BB+/B', citing sound macroeconomic policies and a stable outlook for the North African nation.

The agency said the upgrade reflects Morocco’s steady fiscal consolidation efforts, strong policy framework, and sustained structural and social reforms that have reinforced economic resilience.

S&P expects the country’s budget deficit to narrow to around 3% of GDP by 2026, supported by higher government revenues and prudent fiscal management. Morocco’s government has maintained a consistent reform agenda aimed at improving public finance, strengthening social programs, and encouraging private-sector investment.

According to the agency’s statement, Morocco’s recent economic performance and its outlook are “underpinned by a mix of solid policies and a strong momentum in structural, social, and financial reforms.”

The decision marks a significant step for Morocco as it seeks to attract more foreign direct investment (FDI) to stimulate growth and tackle unemployment in an economy valued at roughly $154 billion.

S&P also forecast a gradual decline in the government debt-to-GDP ratio over the coming years, noting that rising revenues will help reduce fiscal pressures.

The upgrade highlights growing international confidence in Morocco’s economic direction and reinforces its position as one of the more stable emerging markets in the region.