Strong market position as the sole issuer of RMBS in Mongolia. Steady revenue stream. Inherent concentration risk in the mortgage market. The stable outlook on Mongolian Mortgage Corp. HFC LLC (MIK) 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 next one to two years. However, the long-term rating on MIK is effectively capped by the sovereign rating. We will downgrade MIK if we lower the sovereign credit rating on Mongolia. We will upgrade MIK if we raise the sovereign credit rating on Mongolia. The rating on MIK reflects the company's strong market position, and stable funding and
