Standard&Poor's has revised its methodology and assumptions for rating sovereign governments. Consequently, we are affirming the foreign currency long-term rating on Morocco at 'BBB-'. At the same time, we are lowering the local currency long-term rating on Morocco to 'BBB' from 'BBB+' on the change of our methodology for rating sovereign governments. In accordance with our updated sovereign criteria, the local currency rating on Morocco is one notch above its foreign currency rating, compared with two notches previously. We base this on our assessment that monetary policy is independent in Morocco and will transition to a flexible exchange rate regime in the medium term. We have also taken into account the depth of Morocco's local currency capital markets
