An undiversified economy that is vulnerable to external shocks. Large external imbalances. High contingent liabilities from the financial sector and state guarantees to the corporate sector. A stable political environment. Use of the euro as legal tender. Strong incentive to pursue further reforms as a precondition for EU accession. The sovereign credit ratings on the Republic of Montenegro are constrained by Standard & Poor's Ratings Services' view of the country's narrow economic base, vulnerabilities emanating from its high current account deficit, and deteriorating public finances. These constraints are mitigated, in Standard & Poor's opinion, by Montenegro's stable political environment; use of the euro as legal tender; and positive prospects for EU accession, which we expect to occur in the middle...
Companies mentioned in this report are:
- Montenegro (Republic of)
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Research Type: Full Analysis