Moody’s agency confirms Montenegro Ba3 credit rating

Podgorica, Montenegro (1 June 2011) -- Agency for credit rating Moody’s has confirmed today Montenegro's Ba3 credit rating with stable outlook, which along with last year's outlook imporovement from negative to stable, is a confirmation of the Government's efforts to maintain fiscal stability and the overall economic environment.

The preservation of the credit rating is a significant achievement, especially in the current moment, when the credit rating agencies, almost every month, lower the rating of many countries in Europe. In the last 15 months, Moody’s agency has downgraded credit rating of 13 countries, while the outlooks of 4 countries ware revised to negative and only one country in that period has managed to improve its rating with the agency.

In a large number of indicators that Moody’s monitors and evaluates in its reports, Montenegro has better results than other countries with the same rating: GDP per capita (this indicator is 2.5 times higher in Montenegro), the share of direct foreign investments in GDP (the indicator is much better), interest paid on revenues, etc.

The indicators in which Montenegro, compared with other countries with the same rating, has achieved lower score are related to the size of the country, economy diversification and, consequently, high level of current account deficit.

The Ministry of Finance will continue to invest efforts to present Moody’s representatives with the causes of high current account deficit, as this issue is of key importance for improving Montenegro’s credit rating (the main cause is import dependancy). The dynamic economy development, in particular in terms of tourism, as well as high direct foreign investments inevitably mean high import. Unlike most other countries, import is a kind of an indicator of Montenegro’s competitiveness in tourism and business environment. 

The report of this reputable international credit agency is an additional incentive for Montenegro to further implement policies aimed at public finances stabilisation and creating conditions for positive economic trends.

Here you can download Moody’s agency's report.