Downward rating pressure could gradually increase for Singapore banks, as their credit profiles become increasingly linked to Asia's high-growth markets, Fitch Ratings said Wednesday.
Nonetheless, the maintenance of strong balance sheets coupled with Singapore's conservative regulator, would help the banks to preserve financial profiles and high credit ratings in the near-to medium-term. This is reflected in the Stable rating outlook, Fitch said.
The agency noted that strict regulations play a role in Singapore banks having strong loss-absorption capacities and demonstrating their resilience through economic cycles. Without these offsetting features, the risk profile of high-growth markets could begin to weigh on the banks' high ratings.
by RTT Staff Writer
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