Standard & Poor's affirms AA- credit rating on Singapore banks

Ratings agency Standard & Poor's has affirmed its strong ratings for Singapore's local banks, saying their robust financials will put them in good stead even as there is a risk of economic imbalances from high property prices.

DBS Bank, United Overseas Bank and Oversea-Chinese Banking Corp each have a credit rating of AA-.

"The affirmations reflect our expectations that the banks' strong financial profiles and prudent management strategies will provide buffers against any possible pressure on asset quality from high property prices and a potential turn in the interest-rate cycle," said Standard & Poor's credit analyst Ivan Tan.

Although the banks may see slightly more non-performing loans and their revenue growth could decelerate, they "are coming from a position of strength and have sufficient buffers" against such risks, he added.