On March 8, 2004, Standard&Poor's Ratings Services revised its foreign currency outlook on the Kingdom of Morocco to positive from stable. At the same time, the 'BB/B' foreign currency and 'BBB/A-3' local currency ratings on Morocco were affirmed. The local currency outlook remains stable. The ratings on Morocco are constrained by its: High, albeit gradually decreasing, fiscal deficit and debt burden. The general government deficit (including grants, and expenditures from Hassan II fund) is expected at about 4.0% of GDP in 2004, compared with 4.3% in 2003 and 3.2% in 2002. The lower deficit expected in 2004 is primarily due to reduced subsidies, limits on wage increases and capital outlays, and improved tax collection. Standard&Poor's estimates
