Singapore bank rating outlooks may be cut on risks, Fitch says

via EdgeSingapore RSS on 5/10/09

Singapore banks including DBS Group Holdings and Oversea-Chinese Banking Corp. may have rating outlooks revised to negative from stable if capital impairment risks rise and economic conditions worsen, Fitch Ratings said.

Non-performing loan ratios at the Southeast Asian nation's banks should peak at around 11 percent in 2010, from 2% at the end of 2008, the ratings company said today in an e-mailed statement.

While banks in Singapore are in a reasonable position to absorb credit costs, assuming no asset growth and some contraction in revenue from 2008, they will register much lower profits this year, the credit assessor said.