Singapore Retains ‘AAA’ Sovereign Ratings

Share Article

Singapore’s impeccable record of fiscal prudence contributed to its prime credit ratings, says Singapore company setup consultancy AsiaBiz Services.

AsiaBiz Services - Singapore company formation consultancy

AsiaBiz Services - Singapore company incorporation consultancy

The prime investment grade indicates that investment confidence remains strong, despite external pressures and current restructuring challenges.

Fitch, a global credit rating agency, has affirmed Singapore’s sovereign credit ratings, granting the city-state a triple-A (“AAA”) grade for Long-Term Foreign and Local Currency Issuer Default Ratings and “F1+” for Short-Term Foreign Currency IDR. Per Fitch, the outlooks on the ratings are stable.

Analysis by Singapore company registration consultancy AsiaBiz Services points to Singapore’s impeccable record of fiscal prudence as the main contributor to its superior investment grade. In spite of recent challenges following a massive economic restructuring, the Republic’s strong fiscal framework makes it one of the most attractive investment environments in the world.


Singapore’s positive balance sheet and robust surpluses have served as buffers against adverse macroeconomic headwinds. As revealed in Budget Statement 2013, Singapore has a current surplus amounting to $3.9 billion, which comprises 1.1% of the country’s total GDP.

According to data from Fitch, Singapore’s account surplus has allowed the city-state to accumulate considerable foreign-exchange reserves; and as such, Singapore is now one of the largest net external creditors among other “AAA” rated sovereigns.


In addition, Singapore’s business-friendly regulatory environment, stable political system, sophisticated financial backdrop and consistent economic performance, among others, are significant driving factors.

The country’s banking system is particularly noteworthy, with domestic banks achieving a non-performing loan ratio of 1.2% and core Tier 1 capital adequacy ratio (CAR) of 12% - 13% at the end of 2012, mostly due to their solid asset quality and high capital reserves.

Commenting further, AsiaBiz Head of Taxation Mr James Nuben said, “The reaffirmed triple-A rating bodes well for investors and entrepreneurs who intend to form a Singapore company. The prime investment grade indicates that investment confidence remains strong, despite external pressures and current restructuring challenges. With its overall economic and political stability, Singapore indeed is ideal as a regional and global investment hub.”

To date, Singapore is the only triple-A nation in Southeast Asia. Other sovereigns with “AAA” ratings include Australia, Canada, Denmark, Finland, Germany, Luxembourg, Netherlands, Norway, Sweden, and Switzerland.

  • END -

Asiabiz Services is a Singapore-based consultancy that offers business solutions for both local and foreign professionals, investors and entrepreneurs. Our areas of expertise include Singapore company incorporation, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides Singapore work visa and immigration services for foreign professionals wishing to relocate to Singapore.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

James Nuben
Visit website