ULAN BATOR, Oct. 9 (Xinhua) -- The credit rating agency Standard & Poor's (S&P) has affirmed Mongolia's long-term sovereign credit rating at BB- and its short-term rating at B, maintaining a stable outlook, the government's press office announced on Friday, citing the agency's statement.
The stable outlook reflects S&P's expectation that Mongolia will sustain robust, mining-led economic growth while keeping the accumulation of net general government debt at a relatively low level over the next 12 months. However, the agency noted that rising social spending and large-scale infrastructure projects could put pressure on public finances.
S&P said it expects Mongolia's economic growth to remain strong, with real gross domestic product (GDP) projected to expand by an average of approximately 5.6 percent annually through 2029. The mining sector is expected to remain the main driver of economic growth, although the composition of the country's export basket has been undergoing structural changes.
The latest assessment follows credit rating updates by the other two major international rating agencies. In August, Fitch Ratings affirmed Mongolia's long-term issuer default rating at B+ with a stable outlook. In October, Moody's Ratings affirmed the country's long-term sovereign credit rating at B1, also with a stable outlook.
Mongolian officials view the assessments by the three major international credit rating agencies as an important indication of international confidence in the country at a time of heightened global uncertainty. They also see the ratings as a positive signal to international investors that could help attract greater investment into Mongolia. ■
