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Standard & Poor’s increases Mongolia’s credit rating |
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Monday, 17 December 2007 |
 The government of Mongolia,
along with the business community, received news last week that Mongolia’s
credit rating has been increased to 'BB+' from 'BB'.
'The upgrade in the ratings
on Mongolia reflects the country's fast-improving debt and external
liquidity ratios, in conjunction with its solid growth prospects on
the back of a burgeoning mining sector,' Standard & Poor’s said.
'These factors, coupled with
generally prudent economic and fiscal management, are materially reducing
the country's fiscal and external vulnerability, which have traditionally
constrained its rating, especially given its narrow economic base and
exposure to commodity price swings,' it said.
As a practical matter, the
improved credit rating means borrowing money on behalf of the government
and business will become less expensive as Mongolian-related loans will
assume less risk.
In announcing the improved
credit rating for Mongolia, Standard & Poor’s noted economic growth
in Mongolia is expected to again average 7-8 percent in 2008-2010. This
growth makes the Mongolian economy one of the fastest growing in the
world.
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