S&P rates Mongolian Mortgage notes B-

S&P said it assigned a B- long-term and B short-term local- and foreign-currency issuer credit ratings to Mongolian Mortgage Corp. HFC LLC.

The long-term outlook is stable.

The agency also said it assigned a B- long-term foreign-currency issue rating to its proposed senior unsecured notes.

S&P said it expects MIK Holding JSC, which is the only authorized issuer of residential mortgage-backed securities in Mongolia, to maintain its strong market position in the housing financing market in Mongolia.

The agency also said it expects the group to maintain an adequate capital buffer despite its business expansion plan to become a liquidity provider to commercial banks.

The group is regarded as a government-related entity given its policy role to promote the housing market in Mongolia and the government's stake and management interests, S&P added.

However, the ratings are not likely to benefit from any extraordinary support in the coming few years given the sovereign's weak capacity to support, the agency said.

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