...The ratings on Mongolian banks remain closely correlated with the sovereign rating (B+/Stable), both via their GSRs (except TransBank, with an 'ns' GSR) and VRs, mainly through the operating environment (OE). Any significant shift in the sovereign's credit trajectory could therefore have a corresponding impact on the banks' ratings, particularly for large banks. Fitch Ratings believes Mongolia's robust near-term economic growth outlook underpins a stable OE and should support strong business volumes and steady performance for rated banks over the next one to two years. Risks to profitability and asset quality from elevated inflation and tight monetary conditions should remain contained....
