On Aug. 9, 2005, Standard&Poor's Ratings Services raised its long-term foreign currency sovereign credit rating on the Kingdom of Morocco to 'BB+' from 'BB', on an improved external position and the government's ongoing economic reform efforts. At the same time, the 'BBB' long-term local currency, 'B' short-term foreign currency, and 'A-3' short-term local currency ratings were affirmed. The outlook is stable. The upgrade is supported by robust external indicators, including high external liquidity and a public sector net external asset position. The ratings are also supported by strong official commitment to economic reform, in particular, efforts to downsize the public sector, to ensure long-term fiscal consolidation and greater economic diversification. The ratings remain constrained by a high debt
