Moody’s downgrades XacBank to B3

Moody's Investors Service said it downgraded XacBank LLC's issuer rating to B3 from B2 and its foreign currency long-term senior unsecured medium-term note rating to provisional B3 from provisional B2.

The bank's baseline credit assessment was also lowered to b3 from b2.

At the same time, the agency affirmed XacBank's local currency bank deposits rating of B2 and foreign currency bank deposits rating of B3.

The outlooks are negative.

"The action on XacBank's ratings reflects the fact that the bank's asset quality continues to deteriorate against the backdrop of adverse developments in its operating environment," Moody's assistant vice president and analyst Hyun Hee Park said in a news release.

"At a macro-economic level, the ongoing decline in foreign direct investment inflows (FDI) – coupled with the contraction evident in Mongolian exports in 2012 and 2013 – have contributed to a rundown in foreign-exchange reserves, a weakening of the local currency, and a rise in the economy's vulnerability to external risks."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.