Fitch confirms Morocco's BB+ credit rating and budget deficit at 4%

On Thursday, September 17, 2026, the international credit rating agency Fitch Ratings affirmed Morocco's long-term foreign currency sovereign rating at the level of BB+ with a stable outlook, in a new report that reviews the strengths and challenges facing the national economy in the coming years. The strengths on which Fitch based its decision are based on several factors, the most prominent of which are the durability of the macroeconomic policies adopted, the quality of external liquidity reserves, in addition to strong support Morocco has international official creditors, which is reflected in a debt profile that Fitch describes as relatively positive compared to other countries in the same category. On the other hand, the agency pointed to weaknesses that need to be addressed, including the decline of some governance and development indicators, the high ratio of public debt compared to countries classified in the same category (BB), as well as the vulnerability of the Moroccan economy to climate fluctuations. Growth projections and budget deficit According to the report, the Moroccan economy is expected to record Real growth of 4% during 2026, with growth rising to 4.2% on average during 2027 and 2028. On the other hand, the state budget deficit is expected to reach 4% of GDP in 2026, compared to 3.5% in 2025, before declining to 3.4% on average during 2027 and 2028. Fitch attributes this widening deficit in part to higher energy and transport costs caused by the Strait of Hormuz crisis that affected global energy markets. The Ministry of Finance recently revealed the details of the budget deficit Until August 2026. As for public debt, it is expected to reach 67% of GDP by 2028, which is higher than the average of countries classified in the BB category, which is estimated at 51%. Foreign currency reserves and current account Morocco's foreign currency reserves recorded about $48 billion by the end of 2025, which, according to Fitch estimates, provides coverage equivalent to 5.1 months of imports during the period between 2026 and 2028, a level higher than the average of countries classified in the same category set at 4.9 months. Morocco has recently announced a rise in its hard currency reserves. The current account deficit is expected to stabilize at 3.8% of GDP in 2026. What does this classification mean for Morocco? Establishing the rating at BB+ with a stable outlook maintains Morocco's position in international debt markets, as it directly affects the cost of borrowing by the Moroccan state and companies from foreign markets and international financial institutions. This reading comes at a time when the national economy is facing pressures associated with the high cost of energy globally. This makes maintaining macroeconomic balances and reducing the budget deficit in the medium term a key bet for the next government after the September 23, 2026 elections.