The ratings on the Kingdom of 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 reform, to achieve long-term fiscal consolidation and greater economic diversification. The ratings remain constrained by limited fiscal flexibility, a large sovereign debt burden, and weak socioeconomic indicators. Standard&Poor's Ratings Services expects Morocco's external position to remain solid, despite the negative impact of high global oil prices on the trade deficit. The current account balance, which posted a surplus equivalent to 2.2% of GDP in 2005, is likely to remain positive over 2006-2008, bolstered by inflows of Moroccan expatriate remittances, growing Moroccan export demand
