Research Update: Mongolian Mortgage Corp. HFC LLC Assigned 'B-/B' Ratings; Outlook Stable; Proposed Notes Rated 'B-'

In our view, MIK HFC will likely maintain its strong market position as the only authorized issuer of residential mortgage-backed securities in Mongolia. We also expect the group to sustain an adequate capital buffer for business growth despite its concentrated portfolio in mortgages, and increasing credit risks due to its plan to expand into purchasing mortgage assets from commercial banks. We are assigning our 'B-' long-term and 'B' short-term issuer credit ratings to MIK HFC. We are also assigning our 'B-' rating to its proposed senior unsecured notes. The stable outlook on MIK HFC reflects the outlook on the sovereign rating on Mongolia. On April 9, 2018, S&P Global Ratings assigned its 'B-' long-term and 'B' short-term local and foreign

...+ In our view, MIK HFC will likely maintain its strong market position as the only authorized issuer of residential mortgage-backed securities in Mongolia. + We also expect the group to sustain an adequate capital buffer for business growth despite its concentrated portfolio in mortgages, and increasing credit risks due to its plan to expand into purchasing mortgage assets from commercial banks. + We are assigning our 'B-' long-term and 'B' short-term issuer credit ratings to MIK HFC. We are also assigning our 'B-' rating to its proposed senior unsecured notes. + The stable outlook on MIK HFC reflects the outlook on the sovereign rating on Mongolia....

Research Update