Moody's downgraded the ratings of DBS Bank (Hong Kong) Ltd. and OCBC Wing Hang Bank Ltd. following taking similar ratings actions on the banks' Singapore-based parents.

The rating agency downgraded DBS Bank (Hong Kong)'s baseline credit assessment to "a3" from "a2," its adjusted baseline credit assessment to "a1" from "aa3" and its long-term deposit ratings to A1 from Aa3.

OCBC Wing Hang Bank's adjusted baseline credit assessment was downgraded to "a1" from "aa3" and its long-term deposit ratings to A1 from Aa3. Moody's affirmed the bank's baseline credit assessment at "a3."

The outlook on the banks' ratings was revised to stable from negative.

DBS Bank (Hong Kong) and OCBC Wing Hang Bank are subsidiaries of DBS Bank Ltd. and Oversea-Chinese Banking Corp. Ltd.

The ratings downgrade takes into account the very strong support from the banks' parents and the parents' reduced capacity to provide support given the downgrade of their baseline credit assessments to "a1" from "aa3."

The two banks' stand-alone credit assessment may be raised if their asset quality and profitability improve while they maintain sound capitalization. Meanwhile, their deposit ratings could be downgraded if there is a weakening of parental support.

DBS Bank Ltd. is a unit of DBS Group Holdings Ltd.