In a report published on March 17, 2021, international credit rating agency Moody’s upgraded the outlook of Trade and Development Bank (TDB) from “Negative” to “Stable,” while affirming its credit rating at “B3.” This change follows Moody’s March 16, 2021, upgrade of Mongolia’s sovereign outlook to “Stable.”
According to Moody’s, the recovery of China’s economy has driven increased demand for raw materials, improving Mongolia’s macroeconomic environment. This is expected to positively impact the quality of bank assets. Despite the relatively high provisioning for loan losses in 2020 compared to the previous year, TDB’s asset quality has remained stable. Moody’s highlights that this stability persists even after measures taken to alleviate the financial burden on individuals and businesses during the pandemic, such as loan repayment deferrals and interest waivers during deferral periods.
Moody’s Ratings for TDB:
Long-Term/Short-Term Deposit Rating (Local Currency) | B2 |
Long-Term/Short-Term Deposit Rating (Foreign Currency) | B3 |
Issuer Credit Rating | B3 |
Outlook | Stable |