Fitch cuts Khan Bank view to stable

Fitch Ratings said it affirmed Khan Bank's long-term foreign- and local-currency issuer default ratings at B+, individual rating at D and support rating at 4.

The outlook has been revised to stable from positive.

Khan Bank's ratings are constrained by sovereign Mongolia's ratings.

Profitability remains sound, reflecting the bank's high margins in an under-banked market, Fitch said.

The revised outlook on Mongolia's sovereign rating was partly premised on sharply higher inflation, which is likely to bring about higher interest rates that could impinge upon the quality of loans, the agency said. Khan Bank will be somewhat less affected due to its still rural focus, Fitch said.

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