S&P Assigns Golomt Bank's Proposed Senior Unsecured Notes 'B+' Rating
S&P Global Ratings has assigned Golomt Bank JSC’s proposed U.S. dollar-denominated senior unsecured notes a long-term foreign currency issue rating of 'B+'. The rating is subject to S&P’s review of the final issuance documentation.
Strong Franchise and Improving Asset Quality
S&P expects Golomt Bank to maintain its strong business franchise and extensive customer base. The bank was Mongolia’s second-largest bank by loans and third-largest by deposits among domestic peers as of end-2025.
Enhanced risk management is expected to support continued improvement in asset quality over the next 12–18 months. Golomt Bank’s nonperforming asset ratio, based on S&P’s estimate of stage 3 loans, restructured loans, and repossessed assets under IFRS, stood at approximately 5.5% at end-2025, down from around 10.5% at end-2022.
Senior Unsecured Notes and Liability Management
S&P equalized the rating on the proposed notes with Golomt Bank’s long-term issuer credit rating of 'B+/Positive/B', as the notes will constitute direct, unsecured, and unsubordinated obligations of the bank, ranking equally with its other unsecured and unsubordinated obligations.
Golomt Bank intends to use the net proceeds to finance ordinary business operations, including lending, and partially repurchase its existing US$400 million senior unsecured notes through a tender offer before their maturity in May 2027. S&P considers the debt repurchase to be proactive liability management. The bank would be able to meet its debt obligations even without the transaction given its adequate liquidity buffer.
Capitalization Expected to Remain Stable
S&P expects Golomt Bank to maintain its current level of capitalization over the next 12–18 months, supported by moderate loan growth. Together with the expected improvement in asset quality and continued strength of its domestic banking franchise, stable capitalization is expected to support the bank’s credit profile.
CMM Perspective
S&P’s 'B+' rating on Golomt Bank’s proposed senior unsecured notes reflects the notes’ direct, unsecured, and unsubordinated status, ranking equally with the bank’s other unsecured and unsubordinated obligations.
The proposed issuance will support Golomt Bank’s ordinary business operations while also enabling the partial repurchase of its existing 2027 notes. The transaction is considered proactive liability management, while the bank’s strong franchise, improving asset quality, and expected stable capitalization remain key factors in its credit profile.
