Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com -- S&P Global Ratings has upgraded Mongolia’s sovereign credit rating to ’BB-’ from ’B+’ with a stable outlook, citing sustained fiscal consolidation and robust economic growth.
The ratings agency affirmed its ’B’ short-term ratings and revised the transfer and convertibility assessment to ’BB’ from ’BB-’.
The upgrade reflects Mongolia’s improving debt metrics, with government revenue soaring over the past three years due to strong mining activity. The country has achieved three consecutive years of budget surpluses, allowing it to reduce its net general government debt to GDP ratio by almost half and significantly lower interest costs.
S&P forecasts Mongolia’s economy will grow by 5.5% in 2025, following 5.1% growth in 2024. The first half of 2025 saw 5.7% expansion, supported by continued coal exports, a recovering agriculture sector, and rising copper exports.
Copper production has increased substantially, with output up 45% year-on-year to 1.45 million tons in the first eight months of 2025. This has helped offset moderating coal prices and export volumes, which reached 58.4 million tons in the first nine months of the year.
Despite recent political turbulence, including the resignation of Prime Minister Luvsannamsrai Oyun-Erdene in June and subsequent political developments, S&P expects policy continuity as politicians across factions broadly agree on fiscal consolidation and economic priorities.
The agency projects modest fiscal deficits averaging 1.3% of GDP over 2026-2028, with net general government debt expected to decline below 30% of GDP from next year onward.
Mongolia’s external position has also improved, with narrow net external debt to current account receipts decreasing from 184% in 2020 to an estimated 81% in 2025.
Inflation reached 9% year-on-year in September after dipping to 6.8% in 2024. The central bank has hiked rates by 200 basis points in March 2025 to address rising prices.
S&P could lower the ratings if Mongolia’s economic growth trajectory is derailed or if fiscal deficits widen, pushing net government debt above 30% of GDP. Conversely, further improvements in external settings and fiscal position could lead to an upgrade.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.