In an official statement, the ministry emphasized that the progress reported by the two most influential credit rating agencies disproves claims that the country's rating is at rock bottom. Instead, Montenegro has been lifted from the lowest ranks after years of stagnation or decline.
The statement also confirmed that Montenegro remains the most advanced country in the Western Balkans in terms of the EU accession process.
"The upgrade of Montenegro’s credit rating by two renowned international credit rating agencies confirms that the country is on a stable path of progress in terms of economic policies and development processes implemented under this government’s mandate. This encourages us to continue moving forward at an accelerated pace," the statement reads, as reported by Biznis.rs.
The ministry highlighted that two consecutive credit rating upgrades (in March and August 2024) by Standard & Poor’s, one of the key economic indicators, serve as a strong signal of the stability and progress Montenegro has achieved, particularly in fiscal policy and economic reforms.
Confirmation of the government’s successful economic policies
Montenegro’s credit rating increase from B to B+ with a stable outlook, achieved in August last year, is considered a confirmation of the success of the government’s economic policies, according to the ministry’s statement.
The report identifies key factors behind the credit rating improvement, including a significant reduction in public debt, strong nominal GDP growth, and continuous progress in structural reforms aligned with Montenegro’s EU accession process. Additionally, the recovery of the tourism sector has played a crucial role in strengthening the country’s balance of payments position.
Furthermore, Montenegro’s rating is supported by strong economic growth prospects, long-term benefits from structural reforms linked to the EU accession process, and relatively low debt servicing costs.
"It is particularly encouraging that analysts at the agency expect fiscal performance to exceed targets, driven by factors such as potentially higher tourism revenues and additional EU grants associated with Montenegro’s accession process," the ministry stated.
In its latest report, Standard & Poor’s confirmed Montenegro’s stable outlook while maintaining its B+ rating, which is seen as a satisfactory result. This serves as an incentive to continue positive economic trends, improve citizens' living standards, attract larger investments, implement major capital projects, and foster further economic progress.
What is the credit rating of neighbouring countries?
A credit rating assesses a country's ability to meet its debt obligations. It directly impacts the terms under which a country can borrow, as nations with lower ratings pay higher interest rates.
According to the latest assessments from Standard & Poor’s (S&P), Montenegro and Bosnia and Herzegovina have a credit rating of B+, which is classified as "speculative creditworthiness" and indicates a high credit risk.
Albania and North Macedonia hold a BB- rating, just one level above Montenegro, while Serbia has an investment-grade rating of BBB-, which is four levels higher. Croatia, with an A- rating, stands seven levels above Montenegro, while Slovenia, rated AA-, is ten levels higher.
This rating plays a crucial role in future government borrowing and the interest rates countries will have to pay. As a result, countries with lower ratings face higher borrowing costs.
Montenegro leads the way towards EU membership
The report also confirms that Montenegro remains the most advanced country in the Western Balkans in the EU accession process. It has made progress in several areas related to the common rights and obligations known as the EU acquis. Successfully closing key negotiation chapters could further accelerate progress in other areas under discussion.
Montenegro’s economic growth is expected to reach 3.7% in 2025, compared to 3.4% in 2024. Investment remains the key driver of growth, supported by ongoing projects in the real estate, energy, and tourism sectors, which continue to attract capital.
If Montenegro maintains its current investment cycle and external conditions remain stable, economic growth is projected to average around 3% annually between 2026 and 2028.
Credit rating increased for the first time since 2013
On the other hand, the international credit rating agency Moody’s has upgraded Montenegro’s credit rating for the first time since 2013, raising it from B1 to Ba3 with a stable outlook. The agency confirmed that the improvement in Montenegro’s rating is due to strong medium-term growth prospects and enhanced fiscal stability, resulting from lower public debt and reduced fiscal risks following the completion of the Bar–Boljare motorway.
The improved credit rating is seen as confirmation of the stability and progress Montenegro has achieved. According to the renowned credit agency, this is particularly evident in the areas of fiscal policy and economic reforms, reinforcing Montenegro’s position as a predictable and stable environment.
"Since the stable outlook reflects Montenegro’s economic resilience, Moody’s expects that investments will remain the key driver of growth, given ongoing projects in tourism, energy, and transport infrastructure. This motivates the Ministry of Finance and the government to work even harder to position Montenegro at the top of the list of the most attractive investment destinations. Investments are also expected to be supported by further progress in EU-related reforms, as part of the New Growth Plan for the Western Balkans," the statement said.
Additionally, the upgraded credit rating from renowned international agencies not only confirms the stability of public finances and responsible economic policies but will also enhance Montenegro’s status with international financial institutions, strengthen the banking sector, increase its attractiveness as an investment destination, and improve its negotiating position in the EU accession process, which remains its most important foreign policy objective.
(EUpravo zato/Biznis.rs)
