Moody's cuts Khan Bank view to negative

Moody's Investors Service said it changed to negative from stable the outlook of Khan Bank's D bank financial strength rating, Baa3/Prime-3 long-term and short-term local-currency deposit ratings, Baa3 local-currency issuer ratings and Baa3/Ba1 local-currency senior and subordinated debt ratings on its proposed global medium-term notes program.

The outlook remains stable.

The outlook change reflects the bank's deteriorating level of asset quality, occurring against the backdrop of an economic slowdown, Moody's said.

Mongolia has a high dependence on copper and gold exports, the agency said, and its deteriorating trade account may affect the repayment capabilities of borrowers, businesses or individuals.

Concern over the liquidity flight from Mongolia's banking system recently and volatility in the dollar exchange rate also exacerbated pressure on the bank's credit fundamentals, Moody's added.

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