MELBOURNE -- Standard&Poor's CreditWire 12/21/98 -- Standard&Poor's today affirmed its single-'A' public information (pi) rating on the Development Bank of Singapore Ltd. (DBS Bank) following the bank's announcement that it is acquiring at least 65% of Kwong On Bank Ltd. (Kwong On), a bank incorporated and listed in Hong Kong. The acquisition will strengthen the geographic diversification of DBS Bank's operations, and is likely to lead to higher operating return on average assets (ROAA) over the medium term. Rating concerns, however, include the rapid pace of DBS Bank's acquisitions over the past year, weakening in the group's proforma capitalization, and higher exposure to the softening Hong Kong market overall. Kwong On, with total assets of Hong
