Ulaanbaatar /MONTSAME/ Standard & Poor's (S&P) Global Ratings has affirmed its 'B' long- and short-term sovereign credit ratings for Mongolia.

In its report, the rating agency said that its outlook reflects the expectation that the economic shock from COVID-19 pandemic will be temporary and that economic growth will rebound over the next 12 months, leading to a stabilization in Mongolia's external, fiscal and debt metrics.

"Mongolia's commodity-oriented economy is experiencing a considerable slowdown due to the COVID-19 pandemic, but we expect growth to rebound strongly over the coming years, alongside China's economic recovery," the agency said.

According to the S&P Global Ratings, the Mongolian government is expected to resume its fiscal consolidation efforts once the global economy begins to recover.

The agency forecasts the Mongolian economy will contract by 1 percent in 2020, although growth will rebound to 8.5 percent in 2021 as activity resumes and mineral production improves.