Rabat – Morocco’s sovereign bonds surged after S&P Global Ratings upgraded the country to investment-grade status, making it the only Eurobond issuer in Africa with such a rating, Bloomberg reported.
The move restores a status Morocco lost in 2021 due to the twin shocks of the COVID-19 pandemic and prolonged drought, which heavily impacted its tourism and agricultural sectors.
Dollar-denominated Moroccan bonds maturing in 2042 advanced by 0.7%, ranking temporarily among the top 15 performers in emerging markets.
The momentum also spilled over to state-owned OCP Group, with its 2044 bonds climbing – noting growing investor confidence in the country’s economic outlook.
S&P pointed to Morocco’s structural reforms as a key factor behind its decision.
The agency cited improvements in fiscal consolidation, social and economic policies, and projections of a gradual decline in the debt-to-GDP ratio, driven by higher revenues and narrowing deficits.
The upgrade comes at a pivotal moment as Morocco prepares to host the FIFA World Cup in 2030, a project expected to require massive infrastructure investment.
The renewed investment-grade status bolsters the country’s ability to raise capital on global markets, positioning it as a more attractive destination for foreign direct investment.
Analysts view Morocco as a potential “rising star” in the region, with the rating likely to strengthen its credibility among international investors.
The government, meanwhile, is set to present the 2026 draft finance bill next month, aiming to translate this momentum into policies that spur growth and address unemployment.