TEXT-S&P rates Mongolia's Medium-Term note program and note 'BB-'
(The following statement was released by the rating agency)
Nov 21 - Standard & Poor's Ratings Services today assigned its 'BB-' long-term foreign currency issue rating to a global medium-term note (MTN) program of up to US$5 billion by the government of Mongolia (BB-/Stable/B), and to the proposed first drawdown of the program.
We have equalized the rating on the MTN program with our foreign currency sovereign rating on Mongolia. The bond under the MTN program represents direct unconditional obligations of the sovereign, and ranks equally with the government's other unsecured and unsubordinated debt obligations. The rating on the proposed drawdown of the program is subject to our review of the final issuance documentation.
The first drawdown of the MTN program will be denominated in U.S. dollars, with principal and interest payments being made in the same currency. We expect the government to use most of the proceeds for infrastructure and utility projects.
The ratings on Mongolia reflect the country's underdeveloped, resource-driven economy and its weak policy environment. The economy's strong medium-term growth prospects and low general government debt and interest expenses temper these weaknesses.
Nov 21 - Standard & Poor's Ratings Services today assigned its 'BB-' long-term foreign currency issue rating to a global medium-term note (MTN) program of up to US$5 billion by the government of Mongolia (BB-/Stable/B), and to the proposed first drawdown of the program.
We have equalized the rating on the MTN program with our foreign currency sovereign rating on Mongolia. The bond under the MTN program represents direct unconditional obligations of the sovereign, and ranks equally with the government's other unsecured and unsubordinated debt obligations. The rating on the proposed drawdown of the program is subject to our review of the final issuance documentation.
The first drawdown of the MTN program will be denominated in U.S. dollars, with principal and interest payments being made in the same currency. We expect the government to use most of the proceeds for infrastructure and utility projects.
The ratings on Mongolia reflect the country's underdeveloped, resource-driven economy and its weak policy environment. The economy's strong medium-term growth prospects and low general government debt and interest expenses temper these weaknesses.
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