Mongolian
S&P Global Ratings has upgraded Mongolia’s sovereign credit rating from “B+ (positive)” to “BB- (stable)”, the country’s strongest rating in 13 years.
The upgrade reflects improved fiscal discipline, debt management, and sustained economic growth. Since taking office, Prime Minister G.Zandanshatar has amended the 2025 budget, cutting spending by MNT 2.2 trillion and reducing the fiscal deficit. The government also boosted coal exports and foreign currency inflows, helping foreign reserves reach a historic high.
S&P highlighted Mongolia’s strengthened budget performance driven by mining exports, a declining debt-to-GDP ratio, and expectations of continued steady growth with a relatively low deficit over the next one to two years. The agency also expects consistent policy implementation despite domestic political developments.
The move follows other positive ratings actions in 2025: Fitch affirmed Mongolia at “B+, Stable”, and Moody’s upgraded the country to “B1, Stable.” This is S&P’s second upgrade for Mongolia in two years.
The higher rating is expected to reduce Mongolia’s external borrowing costs, strengthen the credit outlook for banks and businesses, and boost investor confidence.
