The ratings on the Kingdom of Morocco are supported by increasingly robust external indicators, including high external liquidity and a net public sector 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 still-limited fiscal flexibility, a large sovereign debt burden, and weak socioeconomic indicators. Morocco's external position has strengthened markedly in recent years, despite the negative impact of high global oil prices on the trade deficit. The current account balance posted a surplus close to 4% of GDP in 2006 and is likely to remain positive over 2007-2009, bolstered by inflows of Moroccan expatriate remittances, growing demand for Moroccan exports, and
