Moody’s acts on four Singapore banks

Moody's Investors Service said it took the following rating actions on DBS Bank Ltd., DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. Ltd. and United Overseas Bank Ltd.:

• Affirmed the Aa1 long-term deposits and senior debt ratings of DBS Bank, Oversea-Chinese and United Overseas Bank;

• Affirmed the Aa2 senior unsecured rating of DBS Group Holdings;

• Downgraded by one notch the subordinated debt and capital instrument ratings of DBS Bank, DBS Group Holdings, Oversea-Chinese and United Overseas Bank; and

• Downgraded the baseline credit assessments (BCA) and adjusted BCAs of DBS Bank, Oversea-Chinese and United Overseas Bank to a1 from aa3.

The outlooks on the long-term ratings of all issuers were revised to stable from negative, reflecting Moody's view that further solvency pressure will be manageable for these financial institutions.

Following these actions, Moody's said it considers that the large Singapore banks still maintain very robust intrinsic credit metrics in both the global and regional context. In addition, the affirmed Aa1 senior debt and deposit ratings benefit from very high support from the Government of Singapore (Aaa stable) in case of need.

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