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Fitch affirms Mongolia's rating at "B" with stable outlook

ULAN BATOR, May 19 (Xinhua) -- The credit rating agency Fitch Ratings has affirmed Mongolia's long-term foreign-currency issuer default rating at "B" with a stable outlook, according to the agency's report released on Wednesday.

Mongolia's ratings are underpinned by governance indicators and per capita income that are strong relative to "B" peers, as well as its favorable medium-term growth outlook, Fitch said in a statement.

Meanwhile, the ratings are constrained by the country's high reliance on external funding and recurring bouts of political volatility among others, it said.

Fitch forecasted that Mongolia's gross domestic product (GDP) growth will remain subdued this year at 1.2 percent, following 1.4 percent in 2021, despite elevated commodity prices and the re-opening of international borders after achieving high COVID-19 vaccination coverage.

The country's gross domestic product is expected to accelerate to 6.3 percent in 2023 and 6.8 percent in 2024, as headwinds from trade disruptions and the Russia-Ukraine conflict wane, according to the rating agency.