Moody's cuts 3 Singapore banks view to negative

Moody's Investors Service said it revised to negative from stable the outlooks for the bank financial strength ratings of DBS Bank Ltd., Oversea-Chinese Banking Corp. Ltd. and United Overseas Bank Ltd. Moody's also said it revised to negative from stable the three banks' Aa1 long-term deposit and debt ratings. The short-term ratings of prime-1 are not affected.

The outlook remains stable.

The outlook reflects the fact that the deepening global economic downturn could have a protracted impact on their asset quality and earnings, Moody's said.

But on an absolute basis, all three banks have strong franchises, healthy credit profiles, liquid and well-capitalized balance sheets, the agency said, and benefit from a high level of support from the Singapore government.

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