Fitch Ratings has affirmed Morocco's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook. Morocco's 'BB+' rating is underpinned by a record of macroeconomic stability reflected in relatively low inflation and GDP volatility pre-pandemic, a moderate share of foreign-currency (FC) debt in total general government (GG) debt, and relatively comfortable external liquidity buffers. These strengths are balanced against weak development and governance indicators, high GG debt, and budget and current account deficits (CAD) that are wider than rating peers. The central government (CG) fiscal deficit rose to 7.7% of GDP in 2020 from 4.1% in 2019 (excluding privatisation proceeds). Covid-19-related containment measures and lower global demand caused a steep fall in revenue while current spending surged to mitigate the health impact and cushion the financial blow on households and corporates. The authorities received about 2.2% of GDP in grants from domestic and international contributors in a dedicated Covid-19 fund, which we include in our fiscal revenue figures.