The sovereign ratings on Morocco are supported by the government's overall track record of prudent fiscal management and its commitment to pursuing credible policies to reduce its fiscal deficit and debt. In the last few months, Morocco's political situation has been tense in the context of the Arab Spring. A revised constitution was adopted by referendum on July 1, 2011, by an overwhelming majority of Moroccans. The modifications seek to strengthen parliament, and reinforce political parties, pluralism, individual liberties, and the independence of the judiciary. We expect, however, that demands for political and socioeconomic change will continue in the medium term especially if the implementation of the constitutional changes is neither swift nor forceful enough. We forecast real GDP growth
