Moody’s lowers Development Bank of Mongolia

Moody’s Investors Service said it downgraded the foreign-currency issuer rating of Development Bank of Mongolia LLC to Caa1 from B3.

The agency also said it downgraded the backed senior unsecured debt and medium-term notes program rating to Caa1 from B3.

Moody’s also said it downgraded the bank’s baseline credit assessment to Ca from Caa1 and affirmed its counterparty risk assessments at B3(cr) and NP(cr).

The outlook is stable.

The downgrades follow the downgrade of Mongolia’s sovereign ratings to Caa1 from B3 with stable outlook, Moody’s explained.

The bank’s downgrade was driven by its strong linkages with the Mongolian government as reflected by the government’s direct ownership in the bank and its clear public policy mandate and follows the downgrade of Mongolia’s sovereign rating to Caa1, the agency said.

The bank also benefits from certain forms of explicit government support provided by law, which closely links its ratings to that of the sovereign, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.