Casablanca – Mubasher: Fitch Ratings affirmed Morocco's long-term foreign and local currency issuer default ratings at 'BBB-' and 'BBB', respectively, with Stable outlook.

The issue ratings on Morocco's senior unsecured foreign and local currency bonds have also been affirmed at 'BBB-' and 'BBB' respectively. The Country Ceiling has been affirmed at 'BBB' and the Short-term foreign currency IDR at 'F3'.

According to Fitch, Morocco's 'BBB-' rating is supported by its macro and political stability, which have helped attract FDI and implement structural reforms. GDP growth was resilient through the 2011/2012 political transition and despite low external demand from the eurozone.

Following a marked deterioration in the budget and current account deficits in 2012, government and net external debt have increased sharply, at levels above its peers' median. However Morocco has embarked in an ambitious path of reforms that has led to a gradual tightening in the twin deficits and will help rebuild policy buffers. Structural indicators are weaker than peers, the ratings agency said.