30 Jun '16, 5am
Moody’s lowers outlook on Singapore banking industry to negative https://t.co/bvUc1G5lqg
SINGAPORE — Ratings agency Moody’s Investors Service has cut its outlook for Singapore’s banking system to negative from stable, as the lenders face worsening operating conditions both domestically and regionally. “We have revised our outlook for Singapore’s banking system to negative from stable. The negative outlook over the next 12 to 18 months
reflects two main factors: The weaker operating conditions for Singapore banks against the backdrop of softer domestic and regional economic and trade growth; and rising risks to the banks’ asset quality and profitability, from their high exposure to energy-related industries and the generally high leverage of domestic firms,” said Moody’s. It warned that the Republic’s growth performance will be adversely affected by its slowing domestic manufacturing sector, and weaker economic activity in its key trade partners, including Gre...