Fitch assigns BBB+ to Dah Sing notes

Fitch Ratings said it assigned a BBB+ rating to Dah Sing Bank Ltd.'s $150 million lower tier 2 subordinated notes due 2016 with a call option in June 2011.

Fitch said the ratings reflect the company's consistent record of combining innovative management and prudent risk controls to achieve both good profitability and sound asset quality. The company's niche in unsecured retail loans and its larger proportion of high-margin consumer lending, especially from credit cards, have been contributing to the bank's superior net interest margin.

However, mainly due to a squeeze in prime-Hibor spreads in 2005, its net interest margins fell to 1.98% from 2.92% in 2004, Fitch said.

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