S&P lowers Montenegro outlook to negative

Standard & Poor's said it revised its outlook on the Republic of Montenegro to negative from stable on the back of rising macroeconomic imbalances.

At the same time, the agency said that the BB+ long-term and B short-term sovereign credit ratings and the AAA transfer and convertibility assessment, were affirmed.

The outlook revision reflects rising macroeconomic imbalances, with Montenegro recording a very high current account deficit of 44% of GDP in 2007, the agency noted, adding that the ratings are supported by strong growth prospects, a strong budgetary position, the use of the euro as legal tender and improved prospects for E.U. accession relative to other countries in the region.

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