Market leader in Singapore with a strong franchise Strong funding profile Strong risk management capabilities to safeguard loan quality Exposure to increasing economic and credit risk due to continuous expansion in emerging Asian markets Pressure on capitalization due to loan book expansion The stable outlook on DBS reflects our belief that DBS will remain a bank with "high systemic importance" in Singapore, and its SACP will stay within the 'a' category over the next one to two years. The outlook also reflects the outlook on the sovereign credit rating on Singapore. We could downgrade DBS if: (1) we lower the sovereign credit rating on Singapore; (2) we no longer believe DBS has high systemic importance in Singapore; (3) the bank's
