S&P downgrades Montenegros credit rating by one notch to BB.

By bne IntelliNews April 1, 2010
International rating agency Standard & Poors announced that it had downgraded Montenegro s sovereign long-term rating by one notch to BB, while the short-term rating was affirmed at B and the outlook remained negative. S&P considers that the country remains vulnerable to indirect and contingent risks stemming from the financial and economic crisis. The agency projects that the economy will witness a further decline in 2010 by about 2.5% y/y, following the estimated 6.7% annual drop last year. S&P justifies the credit rating decline also with the projected decline of FDI from the record-high level of 2009, which was influenced by the privatisation process. Moreover, the agency notes that the decelerating wage growth and inflation will result in weak domestic demand not only in the course of 2010, but also in the next couple of years. The negative developments in the real sector are projected to have a negative impact on public finances and thus trigger a further rise of the public debt. The rating agency conditions a potential upgrade of the countrys rating on improvement of the quality of assets in the real and financial sectors, as well as on stabilisation of the budgetary performance. As recalled, Montenegro got its first rating of BB with a stable outlook in December 2004. A year later the outlook was increased to positive and in March 2007 the ratings were increased by one notch. The latest change of the countrys ratings took place a year ago, when the agency revised the outlook on Montenegro to negative, while the sovereign ratings were affirmed.

Related Articles

Montenegro says to borrow EUR 220mn this year, down 12% than planned.

Montenegro's government said it decided on Thursday, March 21, to reduce to EUR 220mn from EUR 250mn the amount it plans to borrow this year for financing its budget spending and servicing ... more

Montenegro reports increased budget revenue in Q1.

Montenegro's budget revenue increased by 11.5% y/y to EUR 195mn in the period from January 1 to March 20 due to higher profit tax, social contributions and VAT inflows, news service ... more

Mobile phone penetration in Montenegro drops to 155.5% in Feb 2013.

Mobile phone penetration in Montenegro dropped to 155.5% at the end of February 2013, from 159.81% at end-Dec 2012 and 163.66% a year earlier, the latest figures of the telecommunications agency ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss