SINGAPORE (Standard&Poor's) July 10, 2003--Standard&Poor's Ratings Services said today that it affirmed its counterparty credit ratings and outlooks on the three Singapore domestic banks: Development Bank of Singapore (DBS; A+/Stable/A-1), United Overseas Bank Ltd. (UOB; A+/Stable/A-1), and Oversea-Chinese Banking Corp Ltd. (OCBC; A/Stable/A-1). These Singapore-based banks continue to enjoy strong credit profiles. However, they do face challenges in the form of tighter interest margins and still-high levels of gross nonperforming assets (NPAs), considering the ratings on the banks. Tighter interest margins reflect not only the trough of an interest rate cycle, but also, and more importantly, the reduced likelihood that the Singapore economy will enjoy the high growth rates of the past quarter century. Going forward,
