S&P: Montenegro view negative

Standard & Poor's said it revised its outlook on Montenegro to negative from stable and affirmed the BB-/B long- and short-term sovereign credit ratings on Montenegro.

The outlook revision reflects what S&P considers to be considerable external risks. S&P said it estimates the country's gross external financing needs as very high, at 155% of current account receipts (CARs) and usable reserves. In addition, S&P estimates its net external liabilities position as very high at 440% of CARs. These ratios indicate that Montenegro is exposed to the risk of increasing external debt servicing costs or a reversal of foreign direct investment (FDI) inflows, the agency said.

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