Friday, August 24, 2012


DBS: Moody's confirmed all of DBS' ratings and assigned a negative outlook, citing its regional ambitions and its rapid growth in the USD trade finance business amid tighter funding liquidity. Highlights potential financial impact of Bank Danamon acquisition on DBS' creditworthiness was manageable when taken in isolation, but ‘proposed transaction provides further evidence of the grp's expansion ambitions and changing credit profile due to its rapid growth in size and geographic scope in recent yrs, a trend that underpinsnegative outlook.’ Add its ratings are unlikely to move up given the assigned negative outlook, and ratings could be downgraded if overall risk profile increased significantly as a result of aggressive expansion into higher-risk mkts or sizeable acquisitions without sufficient funding to maintain its strong capital ratios, or a non-performing ratio rose >2%.

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