Fitch rates DBS bonds AAA

Fitch Ratings said it rated DBS Bank Ltd.'s $ 1.5 billion of series 11 mortgage covered bonds AAA. This offering brings DBS' total outstanding covered bonds to the equivalent of S$7.7 billion.

The fixed-rate bonds are due in March 2027 and benefit from a 12-month extendable maturity.

“The AAA rating of the mortgage covered bonds is based on DBS' long-term issuer default rating (IDR) of AA-, the various uplifts above the IDR granted to the program and the overcollateralization protection provided through the program’s asset percentage (AP). The covered bonds are rated three notches above the bank's IDR at the highest end of the rating scale. This is out of a maximum achievable uplift of seven notches, consisting of a resolution uplift of zero notches, a payment continuity uplift of six notches and a recovery uplift of one notch,” Fitch said in a press release.

The outlook is stable.

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