Trade and Development Bank of Mongolia's (TDB) capitalization has strengthened following favorable regulatory capital reclassification and slower asset growth in recent years. The Mongolia-based bank's weak profitability due to a build-up of credit risk in the country puts pressure on its business position and tempers the improvement in capital buffers, in our view. We affirmed our 'B' long-term and 'B' short-term issuer credit ratings on TDB. The stable outlook reflects our view that TDB will maintain its capitalization despite a possible dip in profitability over at least the next 12 months. On June 28, 2021, S&P Global Ratings affirmed its 'B/B' long- and short-term issuer credit ratings on Trade and Development Bank of Mongolia. The outlook on the long-term rating
