SINGAPORE (June 13): Singapore banks are well-placed to meet rising credit risks from ongoing stresses in the oil and gas sector, says Fitch Ratings in a report dated Sunday.

This comes as the rating agency warned of a negative outlook on the region's oil and gas sector for 2016, with the credit metrics of rated south-east Asian oil and gas companies expected to deteriorate further this year.

Despite the negative outlook, Singapore banks are well-positioned to withstand potential asset quality deterioration given their disciplined underwriting standards and healthy provision buffers of 128% as a proportion of NPLs (Non-Performing Loans), says Fitch. Overall, Singapore banks remain well-capitalised, with strong liquidity and adequate profit levels.

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