Improving asset quality and operating performance. Diversified earnings base. Solid franchise in its core Singapore market, and relatively significant presence in Hong Kong. Sound liquidity and funding. Competitive pricing pressure. Higher cost structure compared with domestic peers. Higher exposure to treasury market conditions compared with domestic peers. The ratings on DBS Bank Ltd. acknowledge the continuous improvement in its financial profile, particularly its asset quality and operating performance. Its credit risk profile is supported by the bank's ongoing efforts to reduce problem loans, a greater concentration in lower risk mortgage financing, and the de-consolidation of its Thai operations. The ratings also incorporate the bank's fairly significant presence in Hong Kong, as well as its diversified earnings, which help reduce its
