S&P rates Mongolia notes B-

S&P said it assigned a B- long-term issue rating to Mongolia's benchmark-size dollar-denominated notes.

The notes will constitute the direct, unconditional, unsubordinated and unsecured obligations of Mongolia, the agency said.

The sovereign credit ratings on Mongolia reflect an assessment of the country's low-income economy and the government's sizable fiscal deficits, S&P said.

The deficits are the result of shortfalls in revenues and the budget's inclusion of spending on the country's price stabilization and public private partnership programs and the Development Bank of Mongolia, the agency said.

Elevated deficits also continue to push Mongolia's borrowings markedly higher through 2020, S&P said.

Additional weaknesses reflect the country's lower growth prospects and developing institutional effectiveness, which together hamper policy responses, the agency said.

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