OREANDA-NEWS. Fitch Ratings has assigned DBS Bank Ltd.'s (DBS) USD20m 15-year callable range accrual notes due 17 March 2031 (ISIN: XS1379577957) a rating of 'AA-(emr)'. The notes are to be issued on 17 March 2016 under DBS's USD5bn 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 US dollar three-month LIBOR and the spread between the 30-year and two-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 3.95% 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-'.

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-'