Credit Rating Agency Standard & Poor's confirms stable outlook for Montenegro

Credit Rating Agency Standard & Poors published a new Report for Montenegro which confirmed the rating of our country, which is marked as "stable", while preserving the rating B + / B.

Bearing in mind that the credit rating agency Standard & Poors has confirmed the rating given to Montenegro in 2017 for the second time, this fact points to the expectation that after the third such certification could increase the credit rating.

In this way, another relevant global institution recognized the seriousness of implementing fiscal consolidation measures, as well as the overall increase in economic activity resulting from the improvement of general business conditions. According to the Report, the current position of Montenegro on the rating list is the result of a strong economic growth that continued in 2018, estimated at 3.5%, based on the development of tourism, energy and infrastructure, and more specifically, the construction of the first section of the highway that will, as it is said, contribute to regional cohesion and security improvement. Analysts noted a strong growth of 16% in the number of visitors, as well as close to 12% in the number of nights, in the first half of the current year, while predicting the possibility of additional expansion and summer and winter tourism through investments.

Analysts point to the strong institutional position of Montenegro in the region as well as the potential for further development through the structural reforms that our country implements in order to join the European Union, while as crucial activities for achieving the Government's goals, the continuation of the implementation of fiscal consolidation measures, the reduction of the deficit and the level public debt.

The expectations of Standard & Poor's experts are that the public debt will start to fall when the first section of the highway is completed, which corresponds with the Ministry of Finance projections contained in the Fiscal Strategy, which defines a set of fiscal consolidation measures.

The report states that the rating for Montenegro could be increased if numerous projects in the field of infrastructure, energy and tourism, which are currently in progress, yield better results than expected, improving the growth prospects of Montenegro, while reducing the risks within the balance of payments

.