Moody's raised Bank of Singapore Ltd.'s ratings outlook to stable from negative following a similar change on the rating of parent Oversea-Chinese Banking Corp. Ltd.

The rating agency said Dec. 15 that it also affirmed the bank's local- and foreign-currency deposit ratings and its local- and foreign-currency issuer rating at Aa1/P-1.

Bank of Singapore's baseline credit assessment of "a3" remains unchanged and its adjusted baseline credit assessment was downgraded to "a1" from "aa3" following a similar ratings action on OCBC.

Bank of Singapore's ratings could be downgraded if OCBC's adjusted baseline credit assessment rating is downgraded. The bank's ratings could also be downgraded if its fundamentals weaken as evidenced by a more challenging operating environment.

On the other hand, the bank's baseline credit assessment could be upgraded if it improves its operating efficiency and profitability metrics.