Улаанбаатар
S&P Upgrades Development Bank of Mongolia's Credit Rating to B+
Economy
Ulaanbaatar, October 7, 2024 /MONTSAME/. On October 4, S&P Global upgraded the long-term credit rating of the Development Bank of Mongolia (DMB) to ‘B+’, with a positive outlook. Additionally, the bank’s short-term credit rating was affirmed at ‘B’. The decision to upgrade the credit rating is primarily due to the improved credit rating of Mongolia.
- On October 4, 2024, Mongolia's Sovereign credit rating was upgraded from ‘B’ to ‘B+’.
- The Development Bank of Mongolia is the sole state-owned policy bank of Mongolia executing both development and export-import banking functions. Given this, S&P affirmed DBM’s rating on par with Mongolia's Sovereign credit rating.
- DBM's long-term issuer credit rating was upgraded from ‘B-’ to ‘B+’.
- The credit rating outlook for the DBM aligns with that of Mongolia.
S&P Global emphasized that DBM, as a state-owned entity, has a strong likelihood of receiving extraordinary support if needed. The report also noted that the bank will continue to play a crucial role in supporting Mongolia’s economic growth and stability.
S&P Global report further highlighted, “DBM is the main provider of funding for projects that are essential to the country's export-related sectors and economic development. At least 60% of its loans are issued to promote export-related sectors such as mining, agriculture, and transportation. DBM is currently focused on asset recovery and monetizing its repossessed assets. However, we expect the bank to gradually resume extending policy loans in the coming years. In addition, we view DBM as a non-severable arm of the government, given it executes strategic government policies.”
