Credit Rating of LendMN NBFI JSC

MIRA has upgraded LendMN NBFI JSC’s credit rating

MIRA has upgraded LendMN NBFI JSC ratings to ‘BBB’; the Rating Outlook is Evolving.

  • Issuer Rating: BBB (Investment Grade)
  • LendMN Bond Rating: BBB (Investment Grade)
  • Outlook – Evolving

RATING SENSITIVITIES

Positive factors:

Future developments that could collectively lead to a positive rating action include the following:

  • Increase the level of liquid assets
  • Executing business expansion strategies while maintaining asset quality
  • Extending the tenure of withdrawn funds.

Negative factors:

In the pursuit of the business expansion strategy, several potential negative factors have been identified that could impact the credit rating of “LendMN NBFI” JSC. These factors, if realized individually or in combination, have the potential to undermine the creditworthiness of the organization. The identified concerns encompass:

  • Unmet or unattainable expectations regarding business expansion
  • Reduced liquidity due to funding constraints
  • Non-performing loan levels surpassing industry averages.

Outlook: Evolving

An evolving credit rating is a short-term outlook based on the quality of a company’s credit portfolio, rapid growth, and risk management systems.

As part of its debt management activities, the company plans to trade 30.0 billion bonds in the over-the-counter market and on the open market within 2024 in order to repay loans acquired from banks and financial institutions due in 2024, The first tranche of MNT 5.0 billion were successfully issued in the first quarter of 2024.

About the company

“LendMN NBFI” JSC, established in 2006 and operational since 2015, became an open joint-stock company in 2018. This transformation occurred with the public offering of 25 percent of its shares on the Mongolian Stock Exchange. The institution specializes in a range of financial services, including lending, foreign currency trading, electronic settlement and remittance services, factoring, trust services, and issuance of payment instruments, all under a specialized license from the Financial Regulatory Commission (FRC).

Disclaimer:

The credit ratings assigned by MIRA are subject to specific limitations and disclaimers. MIRA’s ratings do not constitute or provide investment or financial advice. Consequently, the company cannot be held liable in the event of adverse outcomes. As a credit rating agency, we do not assume responsibility for information obtained from related parties during the credit rating process.

Furthermore, the regulatory body holds no liability for the ratings provided by MIRA.

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Principle Methodology & Rating Scales: The principal methodology used in these ratings was the NBFI Methodology published on the website. The Rating Scale and Definition is also available at Methodology | Mongolian Investment Rating Agency LLC (mira.mn)