Moody’s, the international credit rating agency, has upgraded Montenegro’s credit rating from B1 to Ba3 for the first time since 2013, with stable outlooks, as announced by the Ministry of Finance.
The agency noted that this upgrade reflects the country’s strong medium-term growth prospects and improved fiscal stability, attributed to lower public debt and reduced fiscal risks associated with the completion of the Bar-Boljare highway.
Moody’s emphasized that significant public and private investments, along with the implementation of EU structural reforms under the New Growth Plan for the Western Balkans, support robust medium-term growth projections.
According to the Ministry, this credit rating improvement is a testament to the stability and progress Montenegro has achieved, particularly in fiscal policy and economic reforms, indicating a more predictable and stable environment for investors.
The stable outlook suggests that Montenegro’s economic resilience will continue, with expectations that investments will remain a key driver of growth, particularly in tourism, energy, and transportation infrastructure. This motivates the government to position Montenegro as a top investment destination.
Analysts at Moody’s predict that further economic integration with the EU will enhance Montenegro’s growth potential, estimated at three percent in the medium term, facilitating income convergence with EU countries.
The ongoing positive fiscal trends have led to a significant increase in budget revenues during the first seven months of the year, compared to both the plan and the same period last year. As a result, Montenegro achieved a budget surplus of 0.6 percent of GDP from January to July, instead of the planned deficit of 2.4 percent.
The Ministry highlighted that Montenegro last held a Ba3 rating with a stable outlook in 2013. This upgrade from a credible international agency not only confirms the stability of public finances and responsible economic policies but also enhances the country’s attractiveness to investors.
Finally, the recent upgrades from two leading international rating agencies within a month underscore that Montenegro is on the right path regarding economic policies and developmental processes implemented over the past ten months, encouraging continued progress.
