Golomt Bank is pleased to announce that it has become the first Mongolian bank to be assigned ratings from the world”s two leading global credit rating agencies:  Moody”s and Standard & Poor”s.  Golomt Bank has achieved the highest issuer ratings of Ba3 in the Mongolian banking sector from Moody”s thereby exceeding Mongolia”s sovereign rating of B1, and ranking level with the sovereign rating of BB- from Standard & Poor”s.  Both outlooks are defined as stable.     

Moody”s has assigned the following ratings:  
 
D-    Bank Financial Strength Rating (BFSR)        
Ba3    Global local currency (GLC) long-term deposit ratings        
B2    Foreign currency long-term deposit ratings        
Ba3    Foreign currency long-term issuer rating        
Ba3    Global local currency long-term issuer rating        
Ba3    Foreign currency senior unsecured debt rating    

In assigning their rating Moody”s stated “The BFSR of D-…. reflects the bank”s strong franchise in Mongolia, as well as its financial fundamentals,” and cited the Bank”s financial strength “including a Tier 1 capital ratio of 11.9%, the highest among the three Group 1 Mongolian banks as defined by The Bank of Mongolia as of June 2011”.
Standard & Poor”s has assigned the following ratings:  
 
BB-    Long Term counterparty credit rating        
B    Short Term counterparty credit rating    

Golomt Bank is the first Mongolian bank to be rated by Standard & Poor”s who specifically cite the Bank”s:

• good market position;
• good position in card services, international trade finance and treasury  services;
• strong business growth strategy;
• prudent dividend policy;
• proactive capital management; 
• total regulatory capital adequacy ratio of 16.1%;
• more diversified business mix than its local peers; 
• higher individual share of the credit card and foreign exchange and trade  business;
• focus on traditional banking business;
• more prudent underwriting standards than its local peers;
• low non-performing loan ratio of 2% in 2010;
• more diversified revenue mix compared to local peers;
• loan to deposit ratio of 60%;

as well as Mongolia”s strong economic growth prospects.  These are already evident from the country’s 16.7% rate of GDP growth in the first three quarters of 2011, one of the highest in the world. 

The assignment of these ratings follows receipt by Golomt Bank of the Euromoney Awards for Excellence 2011 and recognition of the Bank ranking 10th in the world measured in terms of Tier 1 Capital growth of the leading banks outside the Top 1000 according to The Banker in August 2011. 

As at 30th June 2011, according to the Condensed Financial Statements reviewed by Ernst & Young Mongolia Audit LLC, Golomt Bank”s total risk adjusted capital ratio of 16.1% constituted the highest among Mongolia”s leading banks, whilst also reflecting the most efficient capital structure with the highest level of Tier 2 capital.