Credit Rating of Sono Fintech NBFI LLC

MIRA has assigned Sono Fintech NBFI LLC’s credit rating

MIRA has assigned Sono Fintech NBFI LLC ratings at ‘BBB-‘; the Rating Outlook is Evolving.

  • Issuer Rating: BBB- (Investment Grade)
  • Sono Fintech Bond Rating: BBB- (Investment Grade)
  • Outlook – Evolving

RATING SENSITIVITIES

Positive factors:

Ensuring the company maintains adequate levels of liquid assets and reserve funds to mitigate potential risks, alongside initiatives to expand operations and introduce new products without compromising the quality of existing assets, are poised to positively influence the company’s rating. The credit rating agency anticipates that the implementation of the following activities in conjunction will yield favorable outcomes for the credit rating of “Sono Fintech NBFI” LLC:

  • Increasing the level of liquid assets
  • Reducing the cost of fundings
  • Improving the risk management system.

Negative factors:

Failure to sustain operational performance, failure to meet the liquidity ratio mandated by the FRC, and failure to implement improvements to the risk management system alongside with capital expansion are anticipated to adversely affect the credit rating. The credit rating agency identifies the following events, either independently or collectively, as potential factors contributing to a downgrade in credit ratings:

  • Unmet or unattainable expectations regarding business expansion
  • Decreased liquidity stemming from funding constraints
  • Increase in the rate of non-performing loans.

Outlook: Evolving

Evolving outlook is a short-term outlook based on the company’s accelerating growth, quality of company’s loan portfolio, and business model.

Company profile:

“Sono Fintech NBFI” LLC ( ID: 6546331 , Address: Mongolia, Ulaanbaatar City, Sukhbaatar District, Khoroo 2, Khoroolol No. 5, Seoul St. 10/2, Twin Tower-2 No. 1301 ) was established in 2020. The non-banking financial institution is engaged in providing loans through a mobile application with a special license from the Financial Regulatory Commission.

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)