Nigeria News Today: S&P Global Restores Morocco’s Investment-Grade Status

By Andrew Haruna | The Bureau News

S&P Global Ratings has restored Morocco’s investment-grade status, making it the only African sovereign Eurobond issuer with such a ranking. The rating agency announced on Friday that it upgraded Morocco’s long-term foreign-currency rating to BBB- from BB+, with a stable outlook — placing the country alongside Hungary and Oman.

Background to the Upgrade

Morocco lost its investment-grade status in 2021 after the pandemic and severe drought impacted its tourism- and agriculture-dependent economy. According to Bloomberg, the latest improvement signals renewed investor confidence driven by economic resilience and reforms.

Economic Reform Momentum

S&P praised Morocco’s policy mix and structural reforms, citing strong socioeconomic and fiscal measures. The agency projects a gradual decline in the country’s debt-to-GDP ratio as revenues rise and the fiscal deficit narrows.

Investor Reactions

Although Moody’s and Fitch still rate Morocco one notch below investment grade, both maintain stable outlooks. Earlier in March, Morocco successfully issued a €2 billion bond, which attracted over three times that amount in bids, underscoring investor appetite despite previous ratings.

Economic Outlook

The country’s central bank projects growth to accelerate to 4.6% this year, supported by easing inflation, which has stayed below 1% since April after peaking above 10% in early 2023. The government hopes that the improved credit profile will attract foreign direct investment to boost jobs and sustain growth in its $154 billion economy.

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