Mongolian Mortgage Corp. HFC LLC

Nevertheless, we do not foresee a near-term payment or liquidity risk because of MIK's long-term liability structure. We estimate the company's U.S. dollar-denominated bond due January 2027 accounted for about 90% of its total liabilities as of end-June 2024. Prolonged weakness in MIK's capital structure, however, could indicate the company's diminishing importance to the government and lower the likelihood of extraordinary government support, in our view. The stable outlook on the long-term issuer credit rating reflects our view that MIK is unlikely to face any payment or liquidity risk over the next 12 months. This is despite the company's weak capitalization and slow earnings recovery. At the same time, we expect MIK to benefit from a very high likelihood of

...Mongolian Mortgage Corp. HFC LLC (MIK) is at risk of not meeting its financial commitments in the long term on a stand-alone basis, in our opinion. This is due to a delayed recovery in the company's earnings, which will further undermine its thin capital buffer. Nevertheless, we do not foresee a near-term payment or liquidity risk because of MIK's long-term liability structure. We estimate the company's U.S. dollar-denominated bond due January 2027 accounted for about 90% of its total liabilities as of end-June 2024. MIK faces significant pressure on its capitalization. The company will likely book net losses again in 2024 based on its stand-alone financial statements. This reflects sizable one-off expenses related to fee payments for an exchange offer for senior unsecured notes due February 2024 and marked-to-market losses on equity investments in parent MIK Holding JSC due to a fall in share price. Slow deployment of funds for liquidity-provider business, partly due to credit...

Full Report