Standard & Poor's Ratings Services on April 5 affirmedSingapore's long-term sovereign rating at AAA and short-term sovereign ratingat A-1+, with a stable outlook.

The rating agency also affirmed Singapore's"axAAA" long-term and "axA-1+" short-term ASEAN regional-scalecredit ratings. The transfer and convertibility assessment remains at AAA.

The affirmations were driven the city-state's stable andpredictable policymaking, political stability and extensive fiscal and externalstrengths, S&P said. It added that while Singapore's small and open economypresents some risk to its credit profile, the city-state's significant fiscaland external buffers will likely withstand potential shocks.

The stable outlook on Singapore reflects S&P's assumptionthat it will maintain its extensive fiscal and external positions, as well asexpectations that the government will remain forward-looking and pragmatic inits policymaking

The rating agency said that a downgrade in Singapore'sratings in the next two years is unlikely given that its substantial reservesand its flexible policy responses can buffer shocks such as rising credit costsor a sharp and protracted downturn in advanced economies and trading partners.

S&P Ratings andS&P Global Market Intelligence are owned by McGraw Hill Financial Inc.