Fitch rates DBS Bank bonds A+

Fitch Ratings said it assigned a long-term rating of A+ to DBS Bank's proposed issue of dollar-denominated subordinated bonds due 2017, callable with step-up in 2012.

The rating on the issue, which qualifies for lower tier 2 capital as per the Monetary Authority of Singapore guidelines, is one notch lower than DBS' long-term foreign-currency issuer default rating of AA- and is in accordance with Fitch's criteria of rating subordinated debt instruments of financial institutions.

Fitch said the rating is supported by the company's good asset quality, adequate capitalization and generally benign operating conditions in most of its major markets.

Fitch said it believes DBS will likely maintain a sufficient buffer over minimum regulatory requirements, and its ability to absorb reasonable amounts of unexpected losses should remain strong.

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