S&P lowers Mongolia

Standard & Poor’s said it lowered the long-term sovereign credit rating on Mongolia to B from B+.

The outlook is stable.

The agency also said it affirmed the company’s B short-term credit rating and revised the transfer and convertibility assessment to B+ from BB-.

The downgrades reflect a revised view of the country’s growth prospects, S&P said.

Lower economic growth will increase Mongolia’s vulnerabilities arising from its high twin deficits, the agency said.

But two large mining projects also could markedly transform the country’s external- and fiscal-profile in three- to four-years if its terms of trade improve and the projects occur as planned, S&P said.

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