Moody’s rates Mongolian Mining notes B3

Moody's Investors Service said it assigned a B3 senior unsecured rating to the planned senior notes to be sold by Mongolian Mining Corp. and its subsidiary, Energy Resources LLC, and guaranteed by other key subsidiaries. The B3 rating is under review for downgrade.

The notes are rated at the same level as the company's corporate family rating since the notes will rank equally with all other senior unsecured obligations of MMC and its subsidiary, Energy Resources, Moody’s said.

MMC will use the proceeds to refinance its $350 million of notes maturing in April 2024.

"The review for downgrade of MMC's B3 rating reflects its tight liquidity and the uncertainty over the proposed note issuance. That said, we could confirm the rating if the proposed note issuance is completed on satisfactory terms and conditions so that MMC's liquidity profile significantly improves, alleviating the refinancing risk on its maturing debt in April 2024," said Shawn Xiong, a Moody's vice president and senior analyst, in a press release.

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