Moody's affirms DBS Bank

Moody's Investors Service said DBS Bank Ltd.'s ratings have not been affected by news of additional provisions relating to its collateralized debt obligations and other investment exposures during the fourth quarter of 2007, or by its recent acquisition of Bowa Commercial Bank.

The agency affirmed its long-term and short-term deposit ratings at Aa1/prime-1, bank financial strength rating at B, subordinated and junior subordinated debt rating at Aa2 and preference share rating at Aa3.

The outlook is stable.

While DBS took additional provisions as a result of the global market turmoil, the amount is within Moody's stress-testing scenarios and the bank's core business remains sound, which provides support for its current ratings, the agency said. And pressure on DBS Bank's strong balance sheet is not expected, Moody's said.

However, as the global financial markets remain turbulent, Moody's said it will closely monitor market conditions and the bank's performance.

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