SINGAPORE'S debt rating has been upgraded to AAA, the highest possible rating, by Standard & Poor's (S & P), which says the island republic's outlook was stable.
'The upgrade reflects the continued improvement of Singapore's already robust public finances and external financial position, which have strengthened its capacity to weather any foreseeable challenges that may confront the small open economy,' S & P said.
'Decades of cautious macroeconomic management, accompanied by the successful shift towards high value-added production, has enabled Singapore to maintain external competitiveness, register strong growth averaging 8.9 per cent in 1988 to 1994, and attain very high living standards - second only to Japan in Asia.
'A stable, risk-averse and visionary political leadership, which underpins financially conservative economic policies also supports the rating action.' S & P affirmed its A-1-plus rating on Singapore's short-term debt and said the ratings applied to both Singapore dollar and foreign currency denominated debt.
It said Singapore had a well-diversified service and manufacturing-based export economy.
