Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of the Mongolian Mortgage Corporation HFC LLC and other ratings that are associated with the same analytical unit. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.

Key rating considerations are summarised below:

The Mongolian Mortgage Corporation’s B3 Corporate Family Rating reflects its strong asset quality, moderate capitalisation and stable profitability as the sole mortgage servicer for the government’s affordable housing finance program. The company’s key credit weaknesses are its elevated counterparty risks due to its exposure to commercial banks in Mongolia and the Bank of Mongolia, its credit concentration to the Mongolian residential property sector and its weak liquidity.

Mongolian Mortgage Corporation’s B3 rating does not incorporate any uplift for government support because the company’s standalone assessment of b3 is at the same level as the Mongolian government’s B3 issuer rating. Nevertheless, Moody’s expects a high level of support from the government of Mongolia in times of stress. Moody’s assumption of support is based on Mongolian Mortgage Corporation’s close linkages with the central bank and the government, direct and indirect government ownership; and high systemic importance to Mongolia’s financial sector.

This document summarises Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.