NOTE: On January 12, 2018, the press release was corrected as follows: The byline city was changed to Hong Kong. Revised release follows.
Hong Kong, November 12, 2009 -- Moody's Investors Service has today changed to stable from negative the
outlook on the B2 long-term foreign currency deposit ratings of
Khan bank, Trade and Development Bank of Mongolia (TDB) and XacBank.
These rating actions follow Moody's outlook change to stable from negative
for Mongolia's B1 foreign and local currency government bond ratings,
and its Ba2 and B2 foreign currency bond and bank deposit ceilings.
"The long-term foreign currency deposit ratings of Khan bank,
TDB and XacBank are currently constrained by the foreign currency bank
deposit ceiling of B2," says Yvonne Zhang, a Moody's
Vice President and Senior Analyst. "A rating change in the
ceiling would lead to similar rating action for these three Mongolian
banks."
Moody's last rating actions on Khan Bank and XacBank were taken
on June 11, 2009, when their bank financial strength ratings,
long-term local currency deposit ratings and issuer ratings were
downgraded.
The last rating action on TDB was taken on September 10, 2009,
when its ratings were confirmed and their outlook was changed to negative
from stable, due to Moody's concern over its asset quality,
capital position, and liquidity position.
The principal methodologies used in rating these banks were "Bank
Financial Strength Ratings: Global Methodology" (February 2007)
and "Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology" (March 2007). These are available
on www.moodys.com in the Rating Methodologies sub-directory
under the Research & Ratings tab.
Other methodologies and factors that may have been considered in the process
of rating this issuer can also be found in the Rating Methodologies sub-directory
on Moody's website.
All three banks are headquartered in Ulaanbaatar, Mongolia.
As of December 31, 2008, Khan bank reported assets of MNT
839 billion (approximately USD 654 million), TDB MNT 659 billion
(USD 514 million) and XacBank MNT 208 billion (USD 162 million).
Below is a list of the ratings for the three banks (all with stable outlooks,
unless specified):
Khan Bank (all with stable outlook):
Bank Financial Strength D-
LT Bank Deposits (Foreign) B2
LT Bank Deposits (Domestic) Ba3
LT Issuer Rating (Foreign) Ba3
LT Issuer Rating (Domestic) Ba3
Senior Unsecured MTN (Foreign) Ba3
Senior Unsecured MTN (Domestic) Ba3
Subordinate MTN (Foreign) B1
Subordinate MTN (Domestic) B1
ST Bank Deposits (Foreign) NP
ST Bank Deposits (Domestic) NP
Trade and Development Bank of Mongolia:
Bank Financial Strength D- with negative outlook
Long-Term Bank Deposits (Foreign) B2 with stable outlook
Long-Term Bank Deposits (Domestic) Ba3 with negative outlook
Long-Term Issuer Rating (Foreign) Ba3 with negative outlook
Long-Term Issuer Rating (Domestic) Ba3 with negative outlook
Senior Unsecured (Foreign) Ba3 with negative outlook
Senior Unsecured MTN (Foreign) Ba3 with negative outlook
Subordinate MTN (Foreign) B1 with negative outlook
Short-Term Bank Deposits (Foreign and Domestic) NP
Short-Term Issuer Rating (Foreign and Domestic) NP
Other Short-Term (Foreign) NP
XacBank (all with stable outlook):
Bank Financial Strength D-
LT Bank Deposits (Foreign) B2
LT Bank Deposits (Domestic) Ba3
LT Issuer Rating (Foreign) Ba3
LT Issuer Rating (Domestic) Ba3
ST Bank Deposits (Foreign and Domestic) NP
ST Issuer Rating (Foreign and Domestic) NP
Beijing
Yi Zhang
Vice President - Senior Analyst
Financial Institutions Group
Moody's Beijing
Telephone:+86-10 6642 8968
Hong Kong
Young Il Choi
Vice President - Senior Analyst
Financial Institutions Group
Moody's Asia Pacific Ltd.
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