The Organization for Economic Cooperation and Development (OECD) upgraded Mongolia’s credit risk classification in June. The reassessment took the grading from the highest risk rating of 7/7 to 6/7.
During last month’s meeting, the OECD reviewed and reassessed the risk classification for 40 countries. Only three had their ratings changed. Both Senegal and Bangladesh were graded down, while Mongolia was upgraded by one level.
The upgrade is expected to reduce financial pressure on the national budget and private enterprises and strengthen investor confidence in Mongolia.
The reclassification is expected to decrease long-term export financing expenses. It will also reduce funding fees by 3% to 6%, specifically credit risk fees from export credit agencies.
The reassessment is expected to enhance the country’s standing in international financial markets, creating better opportunities for foreign investment for both the private and government sectors.
