Summary: Development Bank of Mongolia LLC

Almost certain likelihood of extraordinary government support due to the bank's policy role. Lower funding costs than commercial banks. Concentrated credit exposure, partly due to the bank's policy function. Reliance on wholesale funding. The stable outlook on Development Bank of Mongolia LLC (DBM) for the next 12-24 months reflects the outlook on the sovereign credit rating on Mongolia. Given the bank's integral link and critical role to the government, rating movements are likely to be linked to those on the sovereign. We would upgrade DBM if we raise the sovereign ratings on Mongolia and the bank remained a critical policy institution for the government. We would downgrade DBM if we lower the sovereign ratings on Mongolia. We could also downgrade

...Strengths: Weaknesses: + Almost certain likelihood of extraordinary government support due to the bank's policy role. + Lower funding costs than commercial banks. + Concentrated credit exposure, partly due to the bank's policy function. + Reliance on wholesale funding. Outlook The stable outlook on Development Bank of Mongolia LLC (DBM) for the next 12-24 months reflects the outlook on the sovereign credit rating on Mongolia. Given the bank's integral link and critical role to the government, rating movements are likely to be linked to those on the sovereign. We would upgrade DBM if we raise the sovereign ratings on Mongolia and the bank remained a critical policy institution for the government. We would downgrade DBM if we lower the sovereign ratings on Mongolia. We could also downgrade DBM if the sovereign's willingness to support the bank declines. We believe this scenario is very unlikely in the coming years, given that DBM is the only policy bank in Mongolia....

Summary