Ratings agency Standard & Poor's (S&P) affirmed Singapore's sovereign credit strength yesterday, adding that the outlook remains stable.

It maintained a top AAA unsolicited rating for Singapore's long-term sovereign credit and an A-1+ rating for its short-term sovereign credit.

S&P also affirmed its axAAA and axA-1+ ratings for the country's long- and short-term Asean regional scale credit ratings. The transfer and convertibility assessment remains at AAA.

The ratings reflect the country's "stable and predictable policymaking, political stability, and extensive fiscal and external strengths", said S&P.

"Singapore's economic performance remains a positive for the credit rating, supported by a credible monetary policy."

It added that the stable outlook reflects its assumption that Singapore will maintain its extensive fiscal and external positions, as well as an expectation that the Government will "remain forward-looking and pragmatic in its policymaking".

It acknowledged that Singapore is vulnerable to shocks such as rising credit costs or a sharp and protracted downturn in advanced economies and trading partners.

But, it added: "We believe Singapore's substantial reserves and its flexible policy responses can buffer these shocks. Therefore, the probability of a downgrade in the next two years is remote."