Banking News

No change to HK/Singapore bank ratings: S&P

No change to HK/Singapore bank ratings: S&P

(Hong Kong/Singapore) – Ratings agency Standard & Poors says it is unlikely to lower the ratings of banks in either Hong Kong or Singapore, or adjust the outlooks on those ratings, as a result of the SARS crisis which has hit the region. Although S&P says the banks in the two centres are likely to "suffer some disruption" to their earnings as a result of SARS, the banks were sufficiently equipped to cope with the increased levels of loan loss expenses if the crisis continues for nine months.

In the worst case scenario, the agency said bank profits for the full year would fall by 45 percent in Hong Kong and 25 percent in Singapore.

S&P also upgraded the ratings of Hong Kong’s Dao Heng Bank, revising to positive from stable the outlook on its a- long-term local and foreign currency counterparty credit ratings.

The upgrade took into account the increased links between Dao Heng and its Singapore parent, the Government-controlled DBS.

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