Strong market position as the sole issuer of RMBS in Mongolia. Strong capital buffer backed by steady revenue stream. Inherent concentration risk in the mortgage market. The stable outlook on Mongolian Mortgage Corp. HFC LLC (MIK HFC) reflects that on the long-term sovereign credit rating on Mongolia. We expect the company to maintain its strong market position and capital buffer, and stable funding and liquidity profiles over the coming one to two years. However, the long-term rating on MIK HFC is effectively capped by our sovereign credit rating on Mongolia. In turn, the ratings on MIK HFC will likely move in tandem with those on the sovereign. We may upgrade MIK HFC if we raise the sovereign credit rating on
