Fitch affirms DBS Bank, Oversea-Chinese Banking

Fitch Ratings said it affirmed the AA- long-term foreign-currency issuer default rating of DBS Bank Ltd. and Oversea-Chinese Banking Corp.

The outlook is stable.

The ratings reflect the banks' strong credit profiles, which remained resilient despite the difficult operating environment in 2008 and 2009, Fitch said.

In contrast to many Western financial institutions, both banks remained profitable in 2009, with asset quality having held up much better than expected and capital not only staying intact but strong, the agency said.

There are some concerns on the rapid increase in property prices in Singapore given that a sharp correction, if it were to materialize together with renewed recessionary pressures, could have a significant impact on the banks' balance sheets, Fitch said.

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