Montenegro's government is implementing sizable fiscal consolidation measures to address the strains on the country's public finances, mainly stemming from ongoing highway construction. We are revising our outlook on Montenegro to stable from negative, and affirming our 'B+/B' ratings. The stable outlook balances the risks of emerging financing pressures for Montenegro's twin fiscal and external deficits over the next 12 months against the potential for a faster consolidation progress and stronger-than-expected economic growth. he outlook revision reflects our expectation that the government will firmly press ahead with its consolidation efforts by implementing the recently legislated revenue and expenditure measures. These efforts would enable the rapid curtailment of government deficits, especially following the end of the construction of the first section of the Bar-Boljare highway scheduled for 2019 and would kick start a reduction of

We expect Saudi Arabia's external and government balance sheet positions will remain strong over 2017-2020. We are affirming our 'A-/A-2' foreign and local currency sovereign ratings on Saudi Arabia. The stable outlook is based on our expectation that the Saudi authorities will take steps to consolidate public finances and maintain government liquid assets close to 100% of GDP over the next two years. OUTLOOK The stable outlook is based on our expectation that the Saudi authorities will take steps to consolidate public finances and maintain government liquid assets close to 100% of GDP over the next two years. We could lower our ratings if we observed further deterioration in Saudi Arabia's public finances. Fiscal weakening could entail prolonged double-digit deficits as a percentage of GDP, a quicker drawdown of fiscal assets, or an unexpected materialization of contingent liabilities. The ratings could also come under pressure if we observed a

We project Morocco's real GDP growth will accelerate in 2017 mainly on a strong rebound in the agricultural output that the economy continues to rely on. We expect the authorities will continue to pursue budgetary consolidation and growth-enhancing reforms, and gradually move toward a more flexible exchange rate regime over the medium term. We are therefore affirming our long- and short-term foreign and local currency ratings on Morocco at 'BBB-/A-3'. The outlook is stable, balancing our expectation of further fiscal consolidation and declining external pressures, over the next two years, against risks to economic growth performance emanating from domestic structural weaknesses. The outlook is stable, balancing our expectation of further fiscal consolidation and declining external pressures, over the next two years, against risks to economic growth performance emanating from domestic structural shortcomings. We could raise the rating if the expe

Strong revenue growth for the State of Saxony-Anhalt is likely to almost fully compensate additional expenditures compared with 2016, which will enable the state to maintain its very strong budgetary performance, make small net debt repayments, and support a solid liquidity position. We are therefore affirming our 'AA+/A-1+' long- and short-term issuer credit ratings on Saxony-Anhalt. The stable outlook reflects our expectation that the reform of the German fiscal equalization mechanism in 2020 will not negatively affect Saxony-Anhalt, and that the state will continue to achieve balanced budgets and meet its debt reduction plans. OUTLOOK The stable outlook reflects our expectation that, thanks to strong tax and tax-related revenues, Saxony-Anhalt will continue to achieve balanced budgets and meet its strategy of gradual debt reduction. The outlook also factors in our belief that the new national fiscal equalization system, applicable from 2020, will pr

Brazil-based railroad operator Rumo has successfully completed its capital increase of R$2.6 billion. We expect the company's financial metrics to improve after the company uses that capital to prepay more expensive debt, reducing interest expenses and increasing cash generation. We also expect Rumo to continue improving its operating performance through the execution of its capex plan in order to increase capacity and remove bottlenecks to become a more efficient operator over the next years. We have raised Rumo's stand-alone credit profile (SACP) to 'bb-' from 'b+'. We have affirmed our 'BB-' ratings on Rumo and on its senior unsecured notes. We have also revised our outlook to stable from negative to reflect our expectations that lower debt and stronger cash generation will allow Rumo to complete its significant capex plan without significant additional funding needs, which would likely further improve financial metrics over the next