Moody’s Assigns 'B1' Rating to Trade and Development Bank of Mongolia's Proposed Senior Unsecured Notes

Moody’s Ratings assigned a ‘B1’ long-term foreign currency senior unsecured debt rating to Trade and Development Bank of Mongolia JSC’s (TDBM) proposed U.S. dollar-denominated three-year senior unsecured notes, with a Stable outlook in line with the bank’s long-term deposit and issuer ratings.

The proposed notes will rank senior, unsecured and unsubordinated, pari passu with TDBM’s other unsecured obligations. Proceeds will be used to support ordinary business operations, including lending activities.

TDBM’s ‘B1’ rating incorporates a one-notch uplift from its ‘b2’ Baseline Credit Assessment, reflecting Moody’s assessment of a high likelihood of government support. TDBM’s systemic importance as Mongolia’s third-largest bank supports this assessment.

Moody’s identified asset quality, funding stability, liquidity, capitalization and profitability as key factors that could influence TDBM’s standalone credit profile, while the rating remains closely linked to Mongolia’s sovereign credit rating.

CMM Perspective

Moody’s assessment highlights TDBM’s systemic importance and strong linkage to the sovereign as key rating supports. For investors, the bank’s credit profile will remain dependent on Mongolia’s sovereign standing and its ability to maintain asset quality, liquidity, funding stability and capitalization.