Moody’s Reassigns Stable Rating To XacBank
Ulaanbaatar, 2012.01.20/ Moody's Investors Service (www.moodys.com), a global independent credit ratings provider, validates XacBank’s Ba3 long-term debt rating for the second year and reaffirms its outlook for all ratings as STABLE.
XacBank’s standalone rating of Ba3 on the long-term rating scale, which is already one-notch higher than the B1 Mongolian sovereign rating, reflects the bank's growing franchise, improved credit quality and solid capitalization after a series of capital injections. The rating firm has also provided detailed rating considerations for XacBank's foreign currency deposit rating and assigned B2, while a foreign currency senior unsecured debt rating of Ba3 was also given to XacBank.
The bank reported strong growth in net interest income in 2011 associated to its rapid credit growth. All major sources of fee-based income, including loan-related fee income, investment income and gains on foreign exchange increased by two-folds or more amid positive economic growth.
Aside from the strong financial performance, Moody’s highlighted XacBank’s market position as the fourth largest banks and improved asset quality as well as its supportive international shareholders and its solid capital funding as key rating strength.
XacBank has been receiving independent ratings from Moody’s Investment Services and Fitch Rating since 2008 and the newly affirmed “STABLE” rating validates the Bank’s relatively well-sustained credit strength, sound corporate governance and comprehensive risk management policies.
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