S&P Assigns Mongolia's Proposed Senior Unsecured Notes 'BB-' Rating
S&P Global Ratings has assigned Mongolia’s proposed benchmark-size U.S. dollar-denominated senior unsecured notes a long-term foreign currency issue rating of 'BB-'. The rating is subject to S&P’s review of the final issuance documentation.
Sovereign Rating and Senior Unsecured Structure
The rating on the proposed notes is aligned with Mongolia’s sovereign rating of 'BB-/Stable/B'. The notes will constitute direct, general, unconditional, unsecured, and unsubordinated obligations of the sovereign and will rank equally with Mongolia’s other unsecured and unsubordinated debt obligations.
Liability Management Exercise
The proposed note issuance forms part of the Mongolian government’s liability management exercise. Concurrently, Mongolia announced a voluntary tender offer for its U.S. dollar-denominated bonds maturing in 2026, 2028, and 2029.
The government intends to use the proceeds from the proposed notes to fund the tender offer, supporting the refinancing and management of its existing external debt obligations.
CMM Perspective
S&P’s 'BB-' rating on Mongolia’s proposed senior unsecured notes is aligned with the sovereign’s long-term foreign currency rating. The issuance forms part of the government’s broader liability management exercise, with proceeds intended to finance the voluntary repurchase of outstanding U.S. dollar-denominated bonds.
The transaction represents a refinancing operation aimed at managing upcoming external debt maturities through the issuance of new benchmark-size senior unsecured notes.
