Standard Chartered Bank (Singapore) Ltd.

Our stable outlook reflects our view that SCBS will remain a core subsidiary of the group over the next two years, as well as the stable outlook on Standard Chartered Bank. SCBS would receive timely support from the group, if needed, under any foreseeable circumstances given its importance to the group. Since our ratings on SCBS are aligned with the wider group, weaker group creditworthiness would lead to a downgrade. We believe an upgrade of SCBS is highly unlikely over the next 24 months. The 'bbb+' anchor draws on our Banking Industry Country Risk Assessment (BICRA) methodology and our view of the weighted-average economic risk in countries where SCBS operates. The anchor also reflects the industry features for banks operating

...The parent's Association of Southeast Asian Nations (ASEAN) hub has raised SCBS' franchise in Singapore. We believe this could optimize SCBS' funding and liquidity and provide it with a bigger capital base to serve large clients in Southeast Asia. In our opinion, the reorganization has solidified SCBS' core group status within the Standard Chartered group. This status underpins our 'A+' rating on the bank. SCBS' capitalization is likely to stay solid. In our base case, the bank's risk-adjusted capital (RAC) ratio will stay well above 10% level for our strong capital and earnings assessment over the next 12-24 months. Earnings should get support from margins expansion as interest rates continue to rise. We also see limited downside risks to asset quality as the Singapore economy continues to grow, leading to lower credit costs....

Full Report