The ratings on Morocco are supported by robust external indicators, including high external liquidity and a public sector net external asset position. The ratings are also underpinned 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 burden, a narrow economic base, and low per capita income, partially offset by good growth prospects. Morocco's external position has been improving significantly in the past three years, mainly due to a decrease in public sector external debt, sustained inflows of Moroccan expatriate remittances, tourism and privatization receipts, and stabilization of the government's net borrowing requirement. This trend is expected to
