Strong fiscal and debt metrics underpin Singapore's Aaa rating: Moody's

Moody’s investors services said that Singapore’s strong fiscal and debt metrics, growth outlook and large external creditor position will underpin its long term issuer rating of Aaa with a stable outlook.

The conclusions were found in a credit analysis of the country released on June 19, which noted that Singapore’s credit profile was very high in economic strength, institutional strength and fiscal strength, and very low in its susceptibility to event risk.

At such a rating, maintaining a market-friendly and fiscally prudent economic policy approach will be credit positive. However, the International Monetary Fund also added that the publication of more detailed statistics like the government's external assets and consolidated public sector finances would further enhance transparency.

In Moody's view, the stable rating outlook is unlikely to change over the next 12 to 18 months, given the government's very strong credit fundamentals.