AKIPRESS.COM - Moody's Investors Service has today affirmed Mongolia's government bond rating at B2. The outlook on the rating remains negative. Concurrently, Moody's has affirmed the government's B2 issuer rating, its senior unsecured MTN rating at (P)B2 and the short-term Not Prime issuer rating.

The affirmation of the rating signifies Moody's view that Mongolia's credit profile will remain in line with B2 peers over the medium term, with current credit-negative trends dissipating over the coming one to two years. Key credit supports include strong potential growth and abundant mineral resource wealth.

The decision to maintain a negative outlook reflects Moody's view that while some of the credit pressures that drove our assignment of the outlook in July 2014 have diminished, others have emerged. The external environment has worsened, particularly in relation to Mongolia's major commodities exports. Until such time as a ramp-up in production and exports from large mining projects occurs, risks stemming from the country's external position will remain elevated. At the same time, the government's debt burden has not fallen and fiscal space is limited.

Mongolia's long-term local currency bond and bank deposit ceilings are unchanged at Ba3. The long-term foreign currency bond and bank deposit ceilings are unchanged at B1 and B3, respectively. The foreign currency short-term bond and bank deposit ceilings are unchanged at Not Prime. These ceilings act as a cap on ratings that can be assigned to the foreign and local currency obligations of entities domiciled in the country.