S&P confirms Montenegro’s credit rating

Montenegro – The most advanced country in the region on its EU accession path

The credit rating agency Standard & Poor’s (S&P) has confirmed Montenegro’s stable outlook, maintaining the country’s B+ rating. 

The confirmation of Montenegro’s credit rating is an encouraging result and a strong incentive to continue positive economic trends. This will further contribute to improving citizens' living standards, attracting larger investments, implementing significant capital projects, and fostering other positive developments. 

Montenegro has been assessed as the most advanced country among all Western Balkan nations in the EU accession process, having achieved progress in several key areas related to the EU acquis—the body of common rights and obligations of EU membership. Successfully closing key negotiation chapters could further accelerate progress in other areas still under discussion. 

Montenegro’s economic growth is projected to reach 3.7% in 2025, compared to 3.4% in 2024, driven by increased investments and higher consumption. 

Investments remain the key driver of growth, supported by ongoing projects in real estate, energy, and tourism sectors, which continue to attract capital. If Montenegro sustains its current investment cycle and external conditions remain stable, the country’s economic growth is projected to average around 3% annually between 2026 and 2028. Tourism directly contributes to over one-quarter of the country’s nominal GDP, with an even greater impact when indirect effects are considered. 

The S&P report also notes that Montenegro’s credit rating could improve if fiscal results exceed current projections and net public debt continues to decline. This could be achieved through strong economic growth. 

Over the past few years, foreign direct investments (FDI) have covered around 50% of the cumulative current account deficit, and this trend is expected to continue. Investments remain concentrated in tourism, real estate, and energy sectors. 

Montenegro’s banking sector remains liquid. As of the end of September 2024, non-performing loans (NPLs) had fallen below 4.7%, the lowest level recorded to date, while the capital adequacy ratio stood at approximately 19.3%. The banking sector is dominated by subsidiaries of foreign banking groups, enhancing its stability and risk management capacity. 

The confirmation of Montenegro’s credit rating is particularly significant in light of the challenges posed by temporary state financing arrangements and global uncertainties. The Government remains committed to preserving macroeconomic and financial stability and to further improving the economic well-being of its citizens.