FITCH WITHDRAWS XACBANK’S SENIOR NOTES EXPECTED RATING

Fitch Ratings has withdrawn the expected rating on Mongolia-based XacBank LLC’s (XacBank) foreign currency senior unsecured notes and Recovery Rating assigned on 27 March 2012. This is because the issue has been put on hold indefinitely.

The senior notes, a draw-down from Xacbank’s USD300m medium-term notes (MTN) programme, had an expected rating of ‘B(exp)’ and a Recovery Rating of ‘RR4′.

XacBank is the fourth-largest bank in Mongolia with a 9% market share in lending and a 7% share in deposits. The bank experienced a 66% annual loan growth in 2011, but Fitch expects this to slow down due to an absence of planned refinancing for the bank’s market funding.