Moody's completes periodic review of Montenegro's ratings

The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of Montenegro's ratings, and a comparison of the financial and operating profile to similarly rated peers, the agency said in a statement late on Friday.

The publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future, Moody's said.

Moody's also said in its statement:

"The credit profile of Montenegro (issuer rating B1) is supported by the country's "ba2" economic strength, reflecting the very small size and limited diversification of its economy that generates a relatively high level of GDP per capita compared to peers; Montenegro's "baa3" institutions and governance strength reflects regulatory and administrative weaknesses that constrain the operating environment. However, in preparation of EU accession several legal, administrative, and procedural reforms are underway, which we expect will strengthen the country's institutions. The country's "baa3" fiscal strength reflects the challenges that the Bar-Boljare highway continue to pose on Montenegro's fiscal position. Montenegro's "ba" susceptibility to event risk is driven by external vulnerability risks and banking sector risks."