OREANDA-NEWS. Fitch Ratings has assigned DBS Bank Ltd.'s (DBS) USD20m 15-year callable range accrual notes due 10 December 2028 a rating of 'AA-(emr)'. The notes were issued on 10 December 2013 under DBS's structured note programme. The (emr) suffix indicates that the rating only reflects the counterparty credit risk of DBS, and excludes the embedded market risk that may vary the size of the coupon payments on the notes.

The notes are fully principal-protected, in that only the coupon stream on the notes is subject to market risk. Coupon payments are linked to the spread between the 30-year and ten-year US dollar swap rates. The instruments may not pay any coupon for a particular interest period if the referenced interest rates move unfavourably. The total interest payout on the notes is capped at 5.42% a year.

While the tenor on the notes is 15 years, the bank has the option to redeem all outstanding notes at par on any interest payment date.

KEY RATING DRIVERS
The notes are rated at the same level as DBS's 'AA-' Long-Term Issuer Default Rating (IDR) as they constitute direct, unsecured and unsubordinated obligations of DBS and rank equally with all its other unsecured, unsubordinated obligations.

RATING SENSITIVITIES
The rating on the notes is sensitive to changes in DBS's IDR, which is driven by its Viability Rating of 'aa-'. For further information on DBS's ratings and credit profile, see the rating action commentary "Fitch Affirms DBS, DBSH, OCBC and UOB at 'AA-'; Outlook Stable" dated 27 August 2014 and its rating report dated 7 October 2014, which are available at www.fitchratings.com.

DBS's other ratings are as follows:
Long-Term IDR 'AA-'; Outlook Stable
Short-Term IDR 'F1+'
Viability Rating 'aa-'
Support Rating '1'
Support Rating Floor 'A-'