The credit rating agency Fitch Ratings has upgraded Mongolia’s long-term foreign-currency issuer default rating to “B+” from “B,” maintaining a stable outlook, the country’s central bank said Thursday, citing the agency’s statement.

The upgrade reflects a reduction in Mongolia’s public and external debt burdens, driven by robust performance in the mining sector, surpassing Fitch’s previous forecasts. Increased foreign exchange reserves, lower debt levels, and more manageable external debt maturities enhance Mongolia’s resilience against shocks, such as potential corrections in commodity markets. However, the country remains vulnerable to external conditions, according to Fitch.

The credit rating agency also noted a decline in policy uncertainty following the regular parliamentary elections held in June.

The agency forecasts that Mongolia’s real GDP growth will average around 6 percent from 2024 to 2026, exceeding the projected median of approximately 4 percent for the “B” category. This growth is expected to be driven by continued expansion in coal and copper mining, alongside strong performance in non-mining activities.