Strong market position in the Mongolian banking industry. Adequate funding and liquidity profiles. Concentration risk to the real estate, construction, and mining sectors. High portion of foreign-currency lending. The stable outlook on Trade and Development Bank of Mongolia LLC (TDB) reflects S&P Global Ratings' view that the bank will maintain its overall credit profile over the next 18-24 months. We expect the bank to sustain its strong market position in Mongolia's banking system. We believe TDB should be able to manage a potential rise in credit costs with its current level of pre-provisioning profit amid difficult operating conditions. We could upgrade TDB if the bank: (1) improves and sustains its capitalization with a risk-adjusted capital (RAC) ratio above 3% in
