1 NICKEL, COPPER PRICES NEAR NEW HIGHS AS CHINA POWERS ON WWW.MINING.COM PUBLISHED:2020/10/20      2 RUSSIA INVITES BRICS PARTNERS TO JOIN COUNTRY’S MASSIVE ARCTIC OIL & GAS PROJECTS WWW.RT.COM PUBLISHED:2020/10/20      3 MINING IN MONGOLIA: OVERVIEW BY CHRISTOPHER MELVILLE AND ERDENEDALAI ODKHUU, MELVILLE ERDENEDALAI LLP WWW.UK.PRACTICALLAW.THOMSONREUTERS.COM  PUBLISHED:2020/10/20      4 THE HYGIENE HYPOTHESIS: IMMUNITY IN MONGOLIAN CHILDREN WWW.MONGOLIANECONOMY.MN PUBLISHED:2020/10/20      5 ‘CASHMERE, WOOL AND LEATHER PRODUCTS-2020’ EXPO WWW.NEWS.MN PUBLISHED:2020/10/20      6 CHINA'S ECONOMY CONTINUES TO BOUNCE BACK FROM VIRUS SLUMP WWW. PUBLISHED:2020/10/20      7 UN ASKED TO COOPERATE FOR CAPACITY BUILDING OF CIVIL SERVICE OF MONGOLIA WWW.MONTSAME.MN PUBLISHED:2020/10/20      8 ALUMNA BECOMES FIRST CHAIRWOMAN OF MONGOLIA'S INFORMATION AND COMMUNICATIONS AUTHORITY WWW.BSG.OX.AC.UK PUBLISHED:2020/10/20      9 FOUR MORE PATIENTS TEST POSITIVE FOR COVID-19 IN MONGOLIA WWW.MENAFN.COM PUBLISHED:2020/10/19      10 CHINA WILL BE THE ONLY MAJOR ECONOMY TO SEE GROWTH THIS YEAR AS WORLD BRACES FOR LONG RECOVERY FROM COVID-19 CRISIS – IMF WWW.RT.COM PUBLISHED:2020/10/19      I-IX САРД СУУДЛЫН АВТОМАШИНЫ ИМПОРТ ЖИЛИЙН ДҮНГЭЭР 26,3 ХУВИАР БУУРЧЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2020/10/20     АЯЛАЛ ЖУУЛЧЛАЛЫН КОМПАНИУДЫН 90 ХУВЬ НЬ ХҮНД БАЙДАЛД БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2020/10/20     “MONGOLIAN MINING CORPORATION”-ИЙН УГААСАН КОКСЖИХ НҮҮРСНИЙ БОРЛУУЛАЛТ III УЛИРАЛД 65 ХУВИАР ӨСӨЖ , 1.2 ТОНН БОЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2020/10/20     2021 ОНЫ ТӨСВИЙН ТӨСӨЛД УЛСЫН ТӨСВӨӨС НИЙГМИЙН ДААТГАЛЫН САНД 499.9 ТЭРБУМ ТӨГРӨГИЙН ТАТААС ОЛГОХООР ТООЦООЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2020/10/20     МОНГОЛЫН КОКСЖИХ НҮҮРСНИЙ ҮНЭ НЭМЭГДЭХ ТӨЛӨВТЭЙ БАЙНА WWW.NEWS.MN НИЙТЭЛСЭН:2020/10/20     АЯЛАЛ ЖУУЛЧЛАЛЫНХАН НЭГДСЭН БРЭНД БҮТЭЭГДЭХҮҮН, ҮЙЛЧИЛГЭЭ ГАРГАНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2020/10/20     "ХАНГАРДИ" ОРДНЫГ ХУВЬЧЛАХ ДУУДЛАГА ХУДАЛДАА ЗАРЛАЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2020/10/20     "СААРАЛ ЖАГСААЛТ"-ААС ГАРАХ ҮНЭЛГЭЭ АМЖИЛТТАЙ БОЛСНЫГ ОНЦЛОВ WWW.EAGLE.MN НИЙТЭЛСЭН:2020/10/20     МОНГОЛБАНК ИПОТЕКИЙН ЗЭЭЛИЙН ЖУРМЫГ ИНГЭЖ ӨӨРЧЛӨВ WWW.NEWS.MN НИЙТЭЛСЭН:2020/10/19     ФАТФ МОНГОЛ УЛСАД 2023 ОНД ДАРААГИЙН ҮНЭЛГЭЭГЭЭ ӨГНӨ WWW.NEWS.MN НИЙТЭЛСЭН:2020/10/19    

Fitch Assigns Mongolia's Proposed USD Bond a 'B' Rating www.fitchratings.com

Fitch Ratings - Hong Kong - 21 Sep 2020: Fitch Ratings has assigned Mongolia's (B/Stable) proposed US dollar bonds a 'B' rating.
Proceeds from the proposed bonds will be used to refinance bonds maturing in 2021 and 2022 through a cash tender offer.
KEY RATING DRIVERS
The rating is in line with Mongolia's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B' with a Stable Outlook.
Fitch affirmed Mongolia's Long-Term Foreign- and Local-Currency IDRs on 28 May 2020.
RATING SENSITIVITIES
The rating on the proposed bond is sensitive to any changes in Mongolia's Long-Term Foreign-Currency IDR.
The following were the rating sensitivities for the sovereign rating published in the rating action commentary in May 2020.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
- The accumulation of larger foreign-currency reserve buffers and the implementation of a debt-management strategy that lowers refinancing risks and maintains external debt sustainability.
- A reduction of fiscal deficits that puts gross general government debt (GGGD)/GDP back on a downward trajectory after the increase in 2020 related to the coronavirus shock.
- A resumption of stronger economic growth and export trends without the emergence of imbalances, and the maintenance of a favourable business environment conducive to robust FDI inflows.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
- Evidence of heightened external financing stress, for example if official multilateral and/or bilateral inflows are not forthcoming or in the event of a marked decline in foreign reserves.
- Failure to reduce the budget deficit and stabilise the GGGD/GDP ratio after the increase in 2020 related to the coronavirus shock.
- Political instability sufficient to significantly disrupt strategic mining projects or FDI inflows.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579].
DATE OF RELEVANT COMMITTEE
27 May 2020
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG CONSIDERATIONS
The ESG profile is in line with that of Mongolia.
For more information on our ESG Relevance Scores, visit www.fitchratings.com/esg.
 
 


Published Date:2020-09-21