Ratings & Services

Service Overview
Although most corporate bond issuances on Mongolia’s OTC Market still rely on collateral, there’s a growing trend toward raising capital through unsecured (rated) bonds. In 2024, 93 entities collectively issued around MNT 1.7 trillion in bonds, reflecting a vibrant funding environment. An unsecured bond rating assesses a company’s ability to meet its obligations without asset backing, offering a clear picture of default risk for investors and potentially more flexible financing for issuers.

Service Overview
A corporate rating provides a holistic opinion on a company’s long‐ or short‐term capacity to meet its financial obligations. This goes beyond a single debt instrument, encompassing factors like financial strength, strategic positioning, and governance practices. Clear, comprehensive corporate ratings help firms secure financing on favorable terms and give investors valuable insights into overall business performance.

Why MNRating for Corporate Ratings?

•    Insightful Analysis: We go beyond surface‐level metrics, examining the firm’s long‐term strategy, market positioning, and governance.
•    Bridge to Capital: A positive rating from MNRating can enhance credibility with both local and global funding sources, whether collateralized or unsecured.
•    Transparent Methodology: We adhere to recognized industry standards, ensuring impartial, high‐quality assessments that investors trust.

What It Is:
A Non‐Bank Financial Institution (NBFI) Rating focuses on the unique operational and regulatory environment of these entities—ranging from microfinance institutions to specialized lenders.
Market Context:
•    Since the inception of the M-OTC Market in 2021, NBFIs have become active participants. In 2024, 46 NBFIs account for 28% of the MNT 1.7 trillion raised—amounting to around MNT 475 million (source: MASD).
•    This momentum underscores alternative lending’s role in boosting financial access in Mongolia.
Why It Matters:
•    For NBFIs: A recognized rating builds market confidence, enabling them to diversify funding beyond traditional channels.
•    For Investors: It reveals operational stability, capital adequacy, and risk management at institutions often perceived as higher risk.

Why MNRating for NBFIs?
•    Specialized Understanding: We’ve studied the nuances of microfinance, fintech, and other NBFI segments to provide tailored risk assessments.
•    Regulatory Alignment: Our ratings align with both Mongolian regulations and global norms, helping NBFIs meet compliance standards and attract a broader investor base.
•    Market Credibility: A well‐structured NBFI rating fosters trust among investors seeking alternative lending models, fueling inclusive financial growth in Mongolia.

Service Overview

Our ESG rating measures an organization’s management of Environmental, Social, and Governance issues, guided primarily by ICMA principles. As ESG factors become increasingly important to both local and global investors, showcasing responsible practices can help differentiate issuers and align them with international sustainability standards.

Why It Matters:

•    For Issuers: Aligning with ICMA principles and demonstrating responsible practices can attract both local and global investors who prioritize sustainability.
•    For Investors: Provides an independent evaluation of a company’s long‐term resilience, ethical impact, and adherence to global ESG standards.

Why MNRating for ESG Ratings?

•    Focused on Global Standards: We base our assessments on recognized frameworks (ICMA), ensuring credibility and comparability in the international arena.
•    Customized Local Insights: We understand Mongolia’s specific environmental and social context, enabling practical guidance and realistic improvement plans.
•    Transparent Feedback: Our detailed ESG evaluations identify strengths and highlight opportunities for enhancement, guiding issuers toward long‐term, responsible growth.

Service Overview

Beyond our ratings, MNRating offers strategic advisory to help entities navigate Mongolia’s dynamic capital market. Whether preparing for unsecured bond issuance, optimizing corporate structures, or enhancing governance, our expert guidance combines local insight with global best practices to foster sustainable, transparent growth.

Why It Matters:

•    For Clients: Expert advice can streamline the issuance process, clarify regulatory requirements, and support long‐term organizational growth.
•    For the Market: Well‐structured, transparent issuers enrich the financial ecosystem, driving Mongolia closer to a fully market‐driven and sustainably financed future.

Why MNRating for Advisory?

Integrated Expertise: We unify rating methodologies, market intelligence, and regulatory know‐how to offer end‐to‐end solutions.

Tailored Roadmaps: Our recommendations are based on each client’s unique goals, covering everything from initial credit readiness to ongoing compliance with evolving market standards.

Future‐Focused Support: By strengthening governance and exploring innovative funding avenues, we help businesses adapt to Mongolia’s increasing emphasis on market‐driven, responsible investment.