Ulaanbaatar
S&P Upgrades Mongolia’s Rating to ‘BB-’ with Stable Outlook
Economy
Ulaanbaatar, October 31, 2025 /MONTSAME/. International credit rating agency S&P Global Ratings upgraded Mongolia’s long-term foreign and local currency sovereign credit ratings to ‘BB-’ from ‘B+’ on October 30, 2025. The outlook on the long-term rating is stable. This marks the country’s highest rating level in 13 years.
According to S&P, several key
factors contributed to the upgrade:
- Mongolia’s fiscal performance has
strengthened significantly since 2022, supported by robust revenues from mining
exports.
- The combination of resilient
economic growth and prudent debt management has led to a decline in the
debt-to-GDP ratio.
- Positive medium-term outlook,
with steady economic expansion and a relatively low budget deficit projected
over the next one to two years.
- Consistent policy implementation
is expected to remain stable despite recent domestic political developments.
The upgrade by S&P aligns with recent actions by other major rating agencies. On September 1, 2025, Fitch Ratings affirmed Mongolia’s long-term issuer default rating at ‘B+’ with a Stable Outlook. Moody’s followed on October 16, raising its sovereign rating from ‘B2 Stable’ to ‘B1 Stable’, citing improved fiscal metrics and external resilience.
The improvement in Mongolia’s credit rating is expected to reduce external financing costs and interest rates, enhance the credit profiles of domestic banks, financial institutions, and corporates, and reinforce foreign investor confidence in the country’s economic outlook.
