Singapore banks' weak operating environment weighing on ratings: Fitch

SINGAPORE banks' core capital ratios should be sustained at around 14 per cent over the next few years, or they risk triggering a rating downgrade, warned Fitch Ratings.

This comes as deteriorating asset quality and profitability is likely to put downward pressure on capital ratios at a time when there is "limited rating headroom", the credit ratings agency said in a report on Sunday.

The banking trio is rated AA- and placed on rating watch negative by Fitch to reflect the weakening operating environment.