Namibia—Standard and Poor’s (S&P) has upgraded Mongolia’s long-term foreign and local currency sovereign credit ratings from B to B+, also assigning a positive outlook to the country’s economic future.
According to Namibia Press Agency, the uplift in Mongolia’s credit ratings was disclosed by S&P in a recent statement highlighted by local media. The agency emphasized Mongolia’s substantial economic recovery over the last 18 months, attributed primarily to its robust commodities exports. “Mongolia has experienced a remarkable turnaround, spurred by strong commodities exports. The country has significantly lifted its growth prospects,” S&P stated, suggesting a more stable economic environment that supports the upgraded rating.
The report from S&P also forecasts a vigorous 6 percent growth for Mongolia’s economy in 2024, driven largely by increased coal and copper exports. These sectors are expected to substantially boost government revenues and contribute to a healthier economic scenario. Additionally, the continued growth in exports is projected to bolster current account receipts and enhance the nation’s external metrics.
This positive adjustment by S&P follows a similar enhancement by Fitch Ratings, which, in late September, raised Mongolia’s long-term foreign-currency issuer default rating from ‘B’ to ‘B+’, while maintaining a stable outlook.
