Morocco's economy contracted sharply by 6.7% in 2020 and its general government deficit rose to 7.7% of GDP, and budgetary consolidation over 2021-2024 is likely to be slow, with net general government debt rising to about 72% of GDP in 2024. At the same time, we believe the increase in state guarantees has spurred a significant rise in contingent liabilities, which if materialized could further exacerbate budgetary pressure. We therefore lowered our long- and short-term local and foreign currency ratings on Morocco to 'BB+/B' from 'BBB-/A-3'. The outlook is stable. On April 2, 2021, S&P Global Ratings lowered its long- and short-term local and foreign currency ratings on Morocco to 'BB+/B' from 'BBB-/A-3'. The outlook is stable. At the same
