The agencies reviewed, “Although the budget deficit of Mongolia is stabilizing, the expense ratio remains high. Whilst Mongolia joined the International Monetary Fund’s program, the debt amount is expected to stay high between 2017 and 2020."

On the other hand, mega projects on the mining sector is expected speed up the economy, since the rating is ‘stable’. Additionally, the rating agencies warned, "the fact that Mongolia is dependent on mining sector, has high external risk and limited monetary policy environment, might affect the rating."

The rating agencies stated that if the Oyutolgoi and Tavan Tolgoi projects could support the economic growth, budget and external sector indicators better than the agencies’ expectations, the long-term bond rating of the Government of Mongolia could be increased. In the case of deterioration in the external balance, the rating may be reduced as well.