Fitch Raises XacBank’s Rating to STABLE
Ulaanbaatar /2010.12.21/ New York and London based Fitch Ratings (www.fitchratings.com), a global independent rating agency, has announced that it has upgraded long-term foreign and local currency Issuer Default Ratings (IDR) for XacBank from “B-“ to “B” and classified the Bank as “STABLE”.
Fitch Ratings considered the overall macroeconomic recovery of Mongolia as well as XacBank’s long-term profitability stemmed from its outstanding operational capability for loan risk management and its well-sustained loan quality, when giving its new ratings. As a result, XacBank’s previous independent ratings have been raised as follows:
Long-term foreign currency Issuer Default Rating: “B+”, “STABLE”
Short-term Issuer Default Rating: B
Long-term local currency Issuer Default Rating: “B+”, “STABLE”
Independent Rating: “D/E”
Support Rating: 5
Support Rating Floor: “B-”
This year Fitch Ratings raised Mongolia’s long-term foreign and local currency Issuer Default Rating from “B” to “B+” and this is due to the government’s increased financial capacity to support the banking sector during necessary times.
XacBank has been receiving independent ratings from Fitch Rating since 2008, however the newly affirmed “STABLE” rating backs up the Bank’s well-gained reputation abroad, sound corporate governance, and highly accomplished risk management, while it also increases the level of international trust in the Bank.
Speaking of the rating, XacBank’s CEO M.Bold said “XacBank is a stable establishment. This stability is the result of the transparency, exemplary governance, mutual trust and close bond among the all stakeholders of XacBank, first of all our customers, international and domestic partners, shareholders, the Board, the management and staff. The stability is the strong foundation for the future growth.”
