(The following statement was released by the rating agency)
SINGAPORE, September 13 (Fitch) Fitch Ratings has assigned DBS
Bank Ltd.'s (DBS)
USD20m 15-year callable range accrual notes due 20 September
XS1483427842) a rating of 'AA-(emr)'. The notes, whose terms and
final, will be issued on 20 September 2016 under DBS's USD5bn
programme. The (emr) suffix indicates that the rating only
counterparty credit risk of DBS, and excludes the embedded
market risk that may
vary the size of the coupon payments on the notes.
The notes are fully principal-protected, in that only the coupon
stream on the
notes is subject to market risk. Coupon payments are linked to
the US dollar
three-month LIBOR and the spread between the 30-year and
five-year US dollar
swap rates. The instruments may not pay any coupon for a
period if the referenced interest rates move unfavourably. The
payout on the notes is capped at 3.63% a year.
While the tenor on the notes is 15 years, the bank has the
option to redeem all
outstanding notes at par on any interest payment date.
KEY RATING DRIVERS
The notes are rated at the same level as DBS's 'AA-' Long-Term
Rating (IDR) as they constitute direct, unsecured and
of DBS and rank equally with all its other unsecured,
The rating on the notes is sensitive to changes in DBS's IDR,
which is driven by
its Viability Rating of 'aa-'.
For more details on DBS's ratings and credit profile, see <a
Singapore Banks at 'AA-', Outlook Stable" dated 1 June 2016
and its rating
report dated 4 July 2016, which are available at
DBS's other ratings are as follows:
Long-Term IDR 'AA-'; Outlook Stable
Short-Term IDR 'F1+'
Viability Rating 'aa-'
Support Rating '1'
Support Rating Floor 'A-'
Wee Siang Ng
+65 6796 7230
Fitch Ratings Singapore Pte Ltd
6 Temasek Boulevard
#35-05 Suntec Tower Four
+65 6796 7239
+65 6796 7229
Date of the Relevant Rating Committee: 31 May 2016
Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Additional information is available on www.fitchratings.com
Global Bank Rating Criteria - Effective from 20 March 2015 to 15
July 2016 (pub.
20 Mar 2015)
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE
FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.
DETAILS OF THIS
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH