The credit rating agency Standard and Poor’s (SandP) has upgraded Mongolia’s long-term foreign and local currency sovereign credit ratings from B to B+ and assigned a positive outlook, as reported by local media on Friday, citing the agency’s statement.
SandP noted, “Mongolia has experienced a remarkable turnaround over the past 18 months, spurred by strong commodities exports. The country has significantly lifted its growth prospects. In our view, this indicates economic strength more compatible with a higher rating,” the agency said.
The agency projects that Mongolia’s economy will expand robustly by 6 percent in 2024, driven primarily by coal and copper exports, which are expected to boost government revenues.
Furthermore, SandP anticipates sustained export growth, which will enhance current account receipts and improve external metrics.
This upgrade follows a similar move by Fitch Ratings, which, in late September, raised Mongolia’s long-term foreign-currency issuer default rating from ‘B’ to ‘B+’, w
hile maintaining a stable outlook.
Source: The Namibia News Agency