Standard & Poor’s Global Ratings revised its outlook on Montenegro’s long-term sovereign credit ratings to positive from stable. This revision, accompanied by the affirmation of the ‘B/B’ long- and short-term foreign and local currency sovereign credit ratings, underscores the positive trajectory of Montenegro’s fiscal health and economic prospects. The Transfer & Convertibility Assessment remains at ‘AAA,’ reflecting the country’s robust capability in managing currency transfers and convertibility.

The shift to a positive outlook from stable indicates that S&P sees potential for Montenegro’s fiscal and balance-of-payments performance to exceed its current forecasts over the next year. This optimism is driven by a consistent reduction in net general government debt as a share of the economy from 2021 to 2023. S&P noted that Montenegro’s ratings could be upgraded within the next 12 months if its fiscal performance outpaces current expectations.

The primary factor behind the positive outlook is the potential for Montenegro’s fiscal performance to exceed S&P’s forecasts, further decreasing net general government debt. The country has demonstrated consistent fiscal discipline, with a noticeable decline in debt levels from 2021 through 2023. Strong economic growth prospects are central to the positive outlook. Structural reforms tied to Montenegro’s EU accession process are expected to yield long-term benefits, enhancing economic stability and growth.

The positive revision in Montenegro’s credit rating outlook for potential investors strongly signals the country’s improving fiscal health and economic prospects. The potential for an upgrade in the credit rating over the next year adds an additional layer of confidence. Investors can look forward to:

• Enhanced Stability: A positive credit rating outlook signifies greater economic stability, reducing investment risks.
• Favorable Investment Climate: Continued structural reforms and fiscal consolidation efforts create a conducive environment for investment.
• Growth Opportunities: Strong growth prospects and the benefits of EU accession reforms present numerous opportunities for investors across various sectors, including real estate, tourism, and infrastructure.