Research Update: Trade and Development Bank of Mongolia LLC Upgraded To 'B' On Improved Economic Risk, Sovereign Upgrade; Outlook Stable

Strong growth in Mongolia's economy should benefit the country's overall banking performance, including asset-quality metrics. We also believe that sovereign risk has lessened, as reflected in our upgrade of Mongolia on Nov. 9, 2018. We are raising our long-term issuer credit rating on Trade and Development Bank of Mongolia (TDB) to 'B' from 'B-'. The stable outlook for the next 12-24 months on TDB mainly reflects the bank's solid market position in Mongolia and very weak risk-adjusted capitalization level. It also reflects the bank's main business focus in Mongolia and its exposure to Mongolia's economic risks, thus the likelihood is very low that TDB will be rated above the sovereign. On Nov. 12, 2018, S&P Global Ratings raised its long-term

...+ Strong growth in Mongolia's economy should benefit the country's overall banking performance, including asset-quality metrics. + We also believe that sovereign risk has lessened, as reflected in our upgrade of Mongolia on Nov. 9, 2018. + We are raising our long-term issuer credit rating on Trade and Development Bank of Mongolia (TDB) to 'B' from 'B-'. + The stable outlook for the next 12-24 months on TDB mainly reflects the bank's solid market position in Mongolia and very weak risk-adjusted capitalization level. It also reflects the bank's main business focus in Mongolia and its exposure to Mongolia's economic risks, thus the likelihood is very low that TDB will be rated above the sovereign....

Research Update