Moody's may lower Mongolian Mortgage

Moody's Investors Service said it placed Mongolian Mortgage Corp. HFC LLC's B3 foreign currency long-term issuer rating, foreign currency backed senior unsecured rating and long-term corporate family rating on review for downgrade.

Previously, the outlook was stable.

The review for downgrade reflects the company's weak liquidity management and the pressure this puts on the company's standalone assessment, amid rising uncertainty over its refinancing plans for its outstanding $223 million U.S. dollar bonds maturing in February 2024, Moody’s said.

“The current very high interest rate environment relative to February 2021 when the company last issued U.S. dollar bonds raises questions over the feasibility of the company tapping the capital market to refinance its bonds. The company also faces very high execution and counterparty risks in its alternative plan to raise liquidity via asset liquidation,” Moody’s said in a news release.

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