Moody's upgrades Montenegro's credit rating

The renowned global credit agency Moody's has upgraded Montenegro’s credit rating for the first time in a decade.

Montenegro’s rating has improved from B1 to Ba3, marking a significant leap and confirming the country's sound economic policies.

For citizens, this is proof that salary and pension increases are sustainable, infrastructure investments are justified, and they can expect lower interest rates on all loans.

Montenegro's economy today is completely different from 2014, when the country had the same rating.

Back then, the economic policies were highly conservative and much less expansive. Despite the current salary and pension increases, along with significant capital expenditures and investments in highways, roads, and railways, the credit rating has improved.

This reflects the immense confidence that credit rating agencies and investors have in our country. In 2014, the capital budget was only €75 million, while now it stands at €237 million, two and a half times higher. The healthcare fund was three times smaller a decade ago, and the education budget was half of what it is today. The average net salary was just €477, but starting from October, it will be around €1,000. The minimum pension back then was only €100, while today it’s €450. Similarly, the average pension has risen from €273 to around €565, he added.

The confidence of international investors in Montenegrin bonds and the state’s economic performance further underscores the country's growth.

Following a decline in bond prices during the political instability and collapse of the minority government in 2022, Montenegrin bonds have since steadily risen, now nearing 94 cents.

This shows a significant level of trust not only in the budget we’ve adopted but also in the Europe Now 2 programme and the capital projects we’ve presented: highways, railways, expressways, and more, Spajić emphasized.

The credit rating upgrade and rising bond prices will bring direct benefits to Montenegrin citizens. 

Montenegro’s borrowing costs and all future financing will be considerably cheaper. We expect to save approximately €30 million annually due to the improved credit rating. Additionally, interest rates on loans—including those citizens take from local banks—will decrease, leading to lower payments for cars, real estate, and other expenses. Lastly, this rating puts us on the radar of serious investors, signaling to major companies that it’s safe to invest in Montenegro, Spajić concluded.