S&P rates Development Bank of Mongolia B+

Standard & Poor’s said it assigned a B+ long-term and B short-term issuer credit ratings to Development Bank of Mongolia.

The outlook is negative.

The ratings reflect the almost certain likelihood that the Mongolian government would provide timely and sufficient extraordinary support if the bank faces financial distress, S&P said.

Therefore, the bank’s ratings are equalized with the sovereign credit ratings on Mongolia, the agency said. The bank’s stand-alone credit profile is B-.

The bank plays a critical role as the government’s sole policy bank for the economic development of Mongolia, S&P said.

The ratings also consider the bank’s high credit concentration in a narrow-based economy, the agency said.

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