Bulletin: Development Bank of Mongolia Clears Bond Repayment Hurdle; No Rating Impact

HONG KONG (S&P Global Ratings) March 21, 2017--S&P Global Ratings said today that its ratings on Development Bank of Mongolia (DBM: B-/Stable/B) are unaffected after the bank successfully settled its sovereign guaranteed bonds of US$580 million due March 21, 2017. This was achieved with the Mongolian government issuing US$600 million bonds in exchange for DBM's US$476 million worth of bonds at par with the remaining balance paid out to those investors that elected not to exchange. We do not view this settlement to be a distressed one because the exchange was at par and investors had the option to be paid out. We believe the bond exchange and repayment further deleveraged DBM's balance sheet, following an earlier substantial reduction from

...HONG KONG (S&P Global Ratings) March 21, 2017--S&P Global Ratings said today that its ratings on Development Bank of Mongolia (DBM: B-/Stable/B) are unaffected after the bank successfully settled its sovereign guaranteed bonds of US$580 million due March 21, 2017. This was achieved with the Mongolian government issuing US$600 million bonds in exchange for DBM's US$476 million worth of bonds at par with the remaining balance paid out to those investors that elected not to exchange. We do not view this settlement to be a distressed one because the exchange was at par and investors had the option to be paid out. We believe the bond exchange and repayment further deleveraged DBM's balance sheet, following an earlier substantial reduction from the government's equity injection toward the end of 2016. We view this as positive for DBM's financial standing for now. However, effects from the revision of a DBM-related law remain to be seen, including its influence on the bank's business growth and...

Bulletin