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 exposure to credit cycles. DBS Bank has been building its treasury operations capability, which could allow it to improve its sustainable non-lending income. In addition, the ratings are supported by its solid franchise in the core Singapore market, which has allowed the bank to enjoy sound liquidity
