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Moody's assigns 1st-time ratings to Mongolian Mortgage

Moody's has assigned first-time ratings to Mongolian Mortgage Corp. LLC.

The rating agency said March 16 that it assigned the company a long-term foreign currency issuer rating and a corporate family rating of B3, with a stable outlook.

The ratings are at par with Mongolia's B3 sovereign rating.

The long-term foreign currency issuer rating reflects the company's low credit risk profile, strong capitalization and stable profitability as the sole mortgage servicer for the Mongolian government's affordable housing finance program.

Moody's expects a high level of support from the government when needed. This assumption of support is based on the company's unique policy role in the country, its close ties with the central bank and the government, the 19.3% direct and indirect government ownership as of the end of 2017 and its high systemic importance in the country's financial sector.

Mongolian Mortgage's ratings could be upgraded if the Mongolian government's B3 rating is upgraded and if the company's stand-alone credit metrics remain strong.

Conversely, a downgrade in the country's sovereign rating could lead to a negative rating action. The ratings could also be lowered if the company expands into new businesses that will increase liquidity risk or credit risk undertaken.