Morocco has become the first — and currently only — African sovereign to hold an investment grade rating from Standard & Poor’s on the eurobond market, a distinction that marks a significant turning point in the country’s financial standing and its positioning among emerging market economies.
In its Africa Credit Rating Trends 2025 report, S&P Global upgraded Morocco to BBB-/A-3 with a stable outlook in September 2025, reversing a downgrade that had occurred in 2021 in the wake of COVID-19-related economic strain. The upgrade places Morocco alongside Botswana (BBB), Mauritius, and Saint Helena (BBB-) — well above regional heavyweights such as South Africa (BB), Egypt (B), and Nigeria (B-).
S&P’s assessment points to several converging strengths. Morocco’s economy sustained a growth trajectory despite repeated external shocks, supported by resilient manufacturing, tourism, and services sectors. GDP growth is projected to average around four percent annually between 2025 and 2028. The fiscal deficit, meanwhile, is on track to narrow to approximately three percent of GDP by 2026, the result of disciplined tax reforms and rationalized public spending.
The strategic implications are concrete. An investment grade classification expands Morocco’s eligible investor base, lowers sovereign bond spreads, and reduces financing costs — benefits that extend to major domestic corporates through what analysts describe as a “halo effect.” This dynamic was already visible when Morocco successfully raised two billion euros at approximately 4.3 percent — the lowest rate recorded for a dual-tranche euro-denominated bond of this kind.
Economists, however, caution against complacency. “A rating is neither a political reward nor an end in itself. It is an implicit contract with markets, conditional on continued reforms, debt discipline, and transforming investment into inclusive growth,” warned economist Adnane Benchekroune. His sentiment was echoed by Zakaria Fahim, Partner at BDO Morocco, who stressed the need to channel the financing advantage toward high-impact sectors — industry, logistics, water, energy, and digital — while also improving access for SMEs.
Challenges remain. Morocco’s economy retains exposure to climate and agricultural shocks, its debt stands near 65 percent of GDP, and the longer-term competitiveness transition toward technology and high-value-added industries remains a work in progress. The investment grade label, analysts agree, is a credibility milestone — but the harder task of converting it into tangible economic gains lies ahead.
