S&P affirms Singapore banks' credit ratings

Singapore

S&P Global Ratings has affirmed its "AA-" long-term and "A-1+" short-term issuer credit ratings on the three Singapore banks, on expectations that the lenders' asset quality will be manageable, and any deterioration will be gradual. The ratings agency on Monday affirmed the rating of DBS and OCBC. This followed from the report on UOB last week.

In its report on DBS, S&P said that the bank's loan growth is expected at low single digits over the next 24 months. "Our more subdued outlook on DBS' loan growth reflects the sluggish credit demand in the domestic housing market and the corporate sector, as well as the ongoing unwinding of the China-related trade finance portfolio," the rating agency said.