BEIJING - Chinese ratings provider Dagong Global Credit Rating Co. said Monday it maintained the local and foreign currency sovereign credit rating of Morocco as BBB+, but downgraded the outlook to negative from stable.
Dagong said it expects Morocco's fiscal position to deteriorate and its solvency to decline as the weaknesses in Morocco's political institutions and economic structure will become more obvious due to the worsening European and American debt crises.
As Morocco's economy largely depends on developed countries, the escalating debt crises in Europe and the United States will continue to have adverse impacts on the country's merchandise and service trade, which will result in a decline of foreign direct investment inflows.
Dagong said it estimates the country's economy will grow at 4.4 percent over the next two years and will maintain a mild growth in the medium- and long-term.
