Moody's Investors Service ("Moody's") has today changed the outlook on the Government of Morocco's issuer ratings to negative from stable. Moody's has affirmed Morocco's Ba1 issuer and senior unsecured bond ratings.

Morocco's central bank left its key interest rate steady for the second time, saying the current accommodative monetary policy stance remains appropriate in light of the double shock to the economy this year from the COVID-19 pandemic and drought.

Morocco's (BBB-/Negative) recent supplementary budget for 2020 foresees the largest fiscal deficit and GDP contraction in decades, Fitch Ratings says. This is broadly in line with our expectation of a severe hit to the country's economy and public finances from the coronavirus pandemic-related shock, which is reflected in the Negative Outlook on its sovereign ratings.

Morocco's central bank cut its key interest rate for the second time this year as inflation is expected to remain moderate this year and in 2021 while the economy is expected to contract at the fastest pace since 1996.