...High portion of foreign-currency lending. Outlook: Negative The negative outlook on Trade and Development Bank of Mongolia LLC (TDB) mainly reflects our negative economic risk trend for Mongolia's banking system under our Banking Industry Country Risk Assessment (BICRA). We believe rapid credit expansion in recent years amid volatile real estate prices would increase credit risk in the economy, worsening operating conditions for banks over the next 18 months. We could lower the rating if the asset quality of TDB or the Mongolian banking sector deteriorates significantly amid a slower domestic economy. We also think the bank's high concentration risks in the real estate, construction, and mining sectors could bear on TDB if economic conditions turn unfavorable. We could revise the outlook to stable if credit expansion in Mongolian banks slows down or real estate prices stabilize in the coming few years, leading us to believe that credit risks in the banking sector have significantly reduced....
