MOODY S ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF MONGOLIA

Moody's conducts periodic reviews through portfolio reviews in which Moody's reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1st January 2019, Moody's issues a press release following each periodic review announcing its completion. 
Moody's has now completed the periodic review of a group of issuers that includes Mongolia and may include related ratings.

The credit profile of Mongolia (issuer rating B3) incorporates its "ba3" economic strength, supported by strong growth potential balanced by a small and narrowly diversified economy; its "b2" institutions and governance strength, which balances weak executive institutions and policy effectiveness against ongoing structural reforms; "b3" fiscal strength, reflecting a high, albeit improving, debt burden, weak debt affordability, and a reliance on foreign currency denominated debt; and a "b" susceptibility to event risk, driven by external vulnerability risk and banking system risk. A fractious political environment is a common feature, with a high rate of change among ruling parties. This has some repercussions for policy decisions.