News Release

DBS Bank receives AAA rating
from Rating Agency Malaysia Berhad

* * *

Rating increases opportunities for DBS’ participation
in the Ringgit capital market

 

SINGAPORE AND KUALA LUMPUR, 19 December 2006 –  DBS Bank announced today that Rating Agency Malaysia Berhad (“RAM”) has assigned a long-term general bank rating of AAA to DBS Bank with a stable rating outlook.  The Bank also received a short-term general bank rating of P1. DBS already has AA- and Aa2 credit ratings from S&P and Moody’s respectively.

DBS is the fourth foreign bank in Malaysia to be given a ‘AAA’ rating by RAM.

Operating since 1995, DBS Labuan is a licensed offshore branch of DBS providing a wide range of investment banking services. Already an active participant in the Malaysian capital markets and a well-recognised name in foreign currency loan syndication, DBS is now even better positioned to service its clients in Malaysia with a formal AAA rating from RAM.

 “A ‘AAA’ rating will enable DBS to participate more effectively and actively in the Malaysian debt capital market,” said Rajan Raju, Head of South and Southeast Asia, DBS,  adding: “With this rating, we expect to tap into broader opportunities in the Malaysian debt market.”

Rajan continued: “Building on the existing strength of our network in Asia, and our well-recognised regional capital market expertise, we hope to create even greater value for our clients who may benefit from more cost-effective funding with our ‘AAA’ rating from RAM which are recognised in Malaysia.”

DBS has been involved in Malaysian debt capital market transactions and has worked with RAM in the rating of such transactions earlier this year.  In September 2006, DBS Labuan secured Malaysian Plantation’s 2-year RM200 million Special First Issuance against a Standby Letter of Credit/Bank Guarantee (“SBLC/BG”). This transaction was assigned AAA(bg)/P1 ratings by RAM.

Earlier in the year, RAM also assigned enhanced ratings of AAA(bg) and P1(bg) to the RM200 million portion of Affin Holdings Berhad’s proposed RM300 million debt notes as a result of a Bank Guarantee by DBS Labuan.

According to Mr Promod Dass, Head of Rating Agency Malaysia's Financial Institutions Ratings: “DBS Bank Ltd’s AAA/P1 ratings are premised on its solid domestic franchise in Singapore, along with the Bank's superior asset quality vis-a- vis its peers in Singapore and Malaysia, healthy performance indicators, sound funding and liquidity positions, and robust capitalisation. The ratings also take into consideration DBS Bank’s importance as Singapore’s flagship bank.”

Note to Editor:

• RAM ratings for financial institutions appended (Appendix A)
• DBS has completed five syndicated finance deals in Malaysia this year, including a £600 million (US$1 billion) deal for Genting International UK in September. DBS is ranked 6th in the league table for top tier arrangers of Malaysia syndicated loans in 2006 year-to-date (Appendix B).