Coface reaffirms Morocco’s stability with “B” rating amid global uncertainty

Friday 17 October 2025 - 15:30

By: Dakir Madiha

Coface reaffirms Morocco’s stability with “B” rating amid global uncertainty

Coface has upheld Morocco’s “B” rating in its October 2025 Risk Review, confirming the country’s moderate and controlled level of business risk. The decision underscores Morocco’s resilient economic fundamentals despite global volatility and regional pressures.

According to the French credit insurer, the “B” classification signifies that companies can operate under generally favorable conditions, though some institutional and external vulnerabilities persist. Morocco’s steady performance stands in contrast to several neighboring economies facing greater instability and exposure to global disruptions.

Coface attributes Morocco’s resilience to its solid macroeconomic framework, extensive infrastructure investments, and ongoing diversification strategy, which have strengthened the country’s ability to weather international headwinds. No rating adjustment was made this quarter, a result that reflects confidence in Morocco’s policy continuity and economic governance.

Regional overview

Coface’s regional analysis highlights marked disparities across North Africa. Algeria, Tunisia, and Libya have faced intensified economic pressure following recent U.S. tariff increases of up to 30%, which have strained their trade balances. Morocco, however, remains largely insulated from these shocks due to its limited trade exposure to the U.S. and its diversified export structure.

“The economic impact will remain marginal given Morocco’s low dependency on U.S. markets and the exemption of key mineral exports,” the report noted. This assessment reinforces Morocco’s standing as a country that has effectively reduced its energy dependency, bolstered foreign reserves, and maintained fiscal stability.

African and global outlook

Coface projects Africa’s overall economic growth to reach 4.1% in 2025 and 4.2% in 2026, supported by easing inflation and healthier external accounts. Morocco’s outlook aligns with this upward trajectory, propelled by industrial investments, infrastructure expansion, and sustained sectoral diversification.

Globally, Coface expects growth of 2.6% in 2025 and 2.4% in 2026. The U.S. economy continues to outperform forecasts, while China shows signs of slowing and the eurozone struggles to regain momentum. Inflation remains contained across most regions, except in the U.S., where it is projected to reach 4% in early 2026.

Rising global political risks

The report also warns of mounting political risks worldwide, with Coface’s global political risk index climbing to a record 41.1%, surpassing its pandemic-era level. The insurer identifies increased polarization, geopolitical tensions, and the challenges of energy transition as key structural threats. The U.S. experienced the sharpest rise in political risk between 2024 and 2025, driven by growing institutional fragility and the resurgence of populism.

For Morocco, however, the reaffirmed rating signals continued investor confidence and a stable operating environment within an increasingly unpredictable global landscape.