The agency also upgraded HNB's subordinated debentures to 'A+(lka)' from 'A(lka)'. Subsequently, the rating Outlook was revised to stable from positive.
The five largest customer exposures represented 12 percent of loans and 123 percent of equity at end-2006 (11 percent and 114 percent in 2005).
Included in the top five were related party exposures to the Stassen's Group of Companies with 3.9 percent of loans and 40.3 percent of equity at end 2006 (3.8 percent of loans and 37.9 percent of equity in 2005).
"An upward revision in the rating would require improvements in asset quality and solvency, while sustaining its profitability and capital formation," Fitch said.