This report covers the key macroeconomic and financial releases as well as the political events from Montenegro for the period of May 6 – June 5, 2015. Standard & Poor's said it has affirmed Montenegro’s B+/B long-term and short-term foreign and local currency ratings with stable outlook on expectations for strong economic growth of an average 3.4% per year in 2015-2018, backed by increased investment activity. Moody’s said in a report that Montenegro's fiscal strength has been worsening in the wake of the double-dip recession of 2008-09 and 2012, reflected in its debt-to-GDP ratio which has increased to almost 58.0% in 2014, more than doubling from 2007's 27.5% level. The European Bank for Reconstruction and Development (EBRD) left unchanged its 2015 economic growth forecast for Montenegro at 3% in the May edition of its Regional Economic Prospects report. The growth should be supported by the construction of the first priority section of the Bar-Boljare motorway from Smokovac to Matesevo. Key points: • The budget deficit contracted by 4.3% y/y to €64.5mn in January-April • The number of foreign tourists visiting Montenegro increased by 19.8% y/y in April to 37,125, speeding up from a 7.4% y/y hike in March • Industrial output rose 11.4% y/y in April, slowing from a 19.3% y/y growth in March • Unemployment rate declined to 13.95% as of June 1 • Bank assets rose 7.6% y/y to €3.18bn at end-April, speeding up from a 5.7% annual growth the month before