Fitch upgrades Mongolia

Fitch Ratings said it upgraded Mongolia's long-term foreign- and local-currency issuer default ratings to B+ from B and country ceiling to B+ from B. The short-term issuer default rating has been affirmed at B.

The outlook is stable.

The upgrades follow Mongolia's successful completion of its International Monetary Fund program, under which official foreign reserves have risen to a record high, Fitch said, and the economy has returned to growth.

The stronger fiscal policy framework written into law in 2010 boosts Mongolia's prospects of seeing its huge natural resource endowment deliver sustained rises in living standards for its people, the agency said.

The key risk remains a return to unsustainable government spending growth, which could squander this progress, Fitch added.

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