US-based ratings agency Standard & Poor’s has revised its banking industry country risk assessment (BICRA) on Morocco from group 8 to group 7. The BICRA is graded on a scale of 1 to 10, with 1 depicting the lowest-risk banking system.

The agency had maintained the economic risk score at 8, which is considered ‘very high risk’ in economic resilience, economic imbalances and credit risk.

The changes have come as a result of the imbalance towards agriculture and tourism in the country’s economy, leaving Morocco vulnerable to external factors. The aftereffects of the Arab uprisings have also created a tense political situation in the country, resulting in a decrease in credit demand and investment.