...HONG KONG (S&P Global Ratings) Oct. 4, 2018--S&P Global Ratings today assigned its 'B-' long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Development Bank of Mongolia (DBM: B-/Stable/B). The rating on the notes is subject to our review of the final issuance documentation. The proposed notes will constitute direct, unsecured, and unsubordinated obligations of DBM. They shall at all times rank at least pari passu with all other unsecured and unsubordinated obligations of the bank. However, the proposed notes will be effectively subordinated to secured obligations of the bank and its subsidiaries. DBM intends to use the proceeds to refinance its existing debt to lower its funding costs. The proposed notes will be considered in default if the Mongolian government ceases to wholly own and control DBM. The proposed notes will also be considered in default if the Mongolian government declares a general moratorium on its external debt, including obligations...
