Rating
agency Fitch has announced that it has affirmed long-term foreign and local
currency Issuer Default Ratings (IDR) for Khan Bank and XacBank at B, with
positive and stable outlooks respectively, each up from previous negative
outlooks, according to Eurasia Capital. Fitch affirmed both banks’ Individual
Rating at “D/E” and short-term foreign currency IDR at B.

Additionally,
Fitch has upgraded Khan Bank”s Support Rating to 4 from 5, and Support Rating
Floor to B from B-; while, for XacBank, the agency affirmed its Support Rating
at 5 and Support Rating Floor at B-. The rating agency has said, “Khan Bank”s
profitability is recovering largely due to lower impairment charges from the
bank”s stabilizing loan quality following a macroeconomic recovery, which
allows the bank to increasingly withstand potential losses. Fitch has thus
revised the Outlook to Positive. Khan Bank”s Support Rating and Support Rating
Floor have been upgraded following an upgrade of the Mongolian sovereign
Long-term IDRs to “B+” from “B” on 23 November.”

In
the case of XacBank, Fitch said, “Without substantial bolstering of its
capitalization and/or reserve levels, upgrades of the Individual rating, and in
turn the Long-term IDRs, are unlikely. However, XacBank”s relatively good
profitability through solid revenue generation and its sound liquidity –
notwithstanding its funding profile – should partly mitigate such potential
risks. Fitch does not expect deterioration in profitability in the near-term.
This view underpins the revision of the Outlook to Stable from Negative.”