With the improvement of Moody’s credit rating in Mongolia and copper prices projected to increase, the resource-rich country is well positioned to grow more in FDI.
Reflecting the improvements to the Mongolian economy, Moody’s Investor Services upgraded the country’s credit rating from a Caa1 to B3 in January 2018, citing the government’s debt refinancing and political reforms, which are expected to mitigate the impact of price swings in the commodity market. The upgrade signals to foreign investors that Mongolia’s economic and political institutions are strengthening, reducing investor uncertainty for the relatively young democracy.
With Rio Tinto, the Australian-British multinational mining corporation had a solid start in 2018 of the incoming FDI in the country, which announced planes to open a new office in Ulaanbaatar, capital of Mongolia. Rio Tino’s new office was also positioned in Mongolia after an investment of $ 5 million in 2015 to excavate the metal-rich Oyu Tolgol mine in partnership with the Canadian company Turquoise Hill Resources.
February 22, 2018