Morocco's Budget Buoys Fitch Rating

He said that  solidarity measures introduced within the framework of the social cohesion fund, providing for an “exceptional contribution” to be imposed for a period of three years on top income earners and on companies realizing large profits.This is designed to benefit the poor, namely those “most exposed to the crisis” in Morocco, the minister stressed. Fitch's decision reflected confidence in Morocco's stability.
 
Fitch Ratings recently affirmed Morocco's long-term foreign currency Issuer Default Rating (IDR) at 'BBB-', long-term local currency IDR at 'BBB', and short-term foreign currency IDR at 'F3', noting that “the outlook is stable”. Fitch also affirmed Morocco's Country Ceiling at 'BBB' ,according to Tax News.
 
The ratings agency said: “Morocco's 'BBB-' rating is supported by a strong macroeconomic performance, as evidenced by low inflation, sustained GDP growth and general government debt (39% of GDP) in line with rating peers.”It added: “Recent success in managing the political transition has underlined Morocco's political stability.”
 
Fitch continued: “Real GDP growth remained strong at 5% in 2011, supported by accommodative economic policies and structural reforms, and despite economic difficulties affecting Morocco's main economic partners in the eurozone.”