Standard & Poor agency lowered its long-term sovereign credit rating on Mongolia to ‘B-’ from ‘B’.
S&P, however, raised its risk assessment of Mongolian commercial banks last week, said we cut long-term sovereign credit rating on Mongolia due to its expenditure reduction for state budget as well as weak export and foreign investment inflows.
S&P retained its short-term sovereign credit rating on Mongolia. However, they are studying on it. They added that the development of the Oyu Tolgoi and Tavantolgoi projects could boost Mongolia`s economy.
S&P said it had lowered GDP growth estimate for Mongolia to an average of 3.2% over 2016-2019 from 4%.
Due to Mongolia has weak export earnings and direct investment, it has not enough financing to support economic growth. In regards, it estimated the country's true fiscal deficit to be around 21% of gross domestic product GDP in 2016, compared to the S&P's earlier estimate of 9.1%. Economic growth is expected to be estimated at 1.3 percent which is two times lower than the previous estimate.
Standard & Poor agency lowered its long-term sovereign credit rating on Mongolia to ‘B-’ from ‘B’.
S&P, however, raised its risk assessment of Mongolian commercial banks last week, said we cut long-term sovereign credit rating on Mongolia due to its expenditure reduction for state budget as well as weak export and foreign investment inflows.
S&P retained its short-term sovereign credit rating on Mongolia. However, they are studying on it. They added that the development of the Oyu Tolgoi and Tavantolgoi projects could boost Mongolia`s economy.
S&P said it had lowered GDP growth estimate for Mongolia to an average of 3.2% over 2016-2019 from 4%.
Due to Mongolia has weak export earnings and direct investment, it has not enough financing to support economic growth. In regards, it estimated the country's true fiscal deficit to be around 21% of gross domestic product GDP in 2016, compared to the S&P's earlier estimate of 9.1%. Economic growth is expected to be estimated at 1.3 percent which is two times lower than the previous estimate.