S&P: Moroccan banks improving

Standard & Poor's said that the Moroccan banking system has begun to grow stronger after a few years of stabilization and is set to benefit from nascent business momentum.

As banks in the Kingdom of Morocco (foreign currency BB+/stable/B, local currency BBB/stable/A-3) are relatively immune to external competition and shocks, the domestic economic and competitive environments will be the main drivers of their future creditworthiness, the agency noted.

"As competition mounts, most Moroccan banks want to become diversified universal financial institutions," said S&P credit analyst Anouar Hassoune.

"In their bid to do so, the largest players are expanding new business lines, particularly consumer finance. In addition, to cope with mounting competition, financial institutions are opting either for consolidation or niche strategies."

Rapid business growth in Morocco's system can mask problems revealed only during an economic downturn, as in other countries with untested risk controls, S&P noted.

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