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S&P affirms 'AAA' long-term credit rating for Singapore

S&P says the outlook is stable for Singapore, but warns that there are some risks to its credit profile. 

SINGAPORE: International ratings agency Standard & Poor's has affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on Singapore.

In a research update issued on Friday (May 23), S&P says this reflects Singapore's extensive fiscal and external strengths, effective policy-making, and political stability.

And it adds that Singapore's economic performance supported by a credible monetary policy remains a positive for the credit rating.

However, S&P also warns that brisk credit growth relative in real terms and vulnerabilities in a small and open economy present some risks to Singapore's credit profile.

S&P says the outlook is stable reflecting its expectation that Singapore will maintain its extensive fiscal and external positions.

The rating agency adds that Singapore's extensive reserves and its flexible policy responses can buffer shocks such as a sharp and protracted downturn in the advanced economies or rising credit costs.

It sees a less than one-in-three probability that it would lower its ratings on Singapore in the next two years. 

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