Government support associated with controlling state ownership Strong franchise in mainland China and Hong Kong Good capitalization Developing credit culture Latent credit risks on loan book Sizable exposure to distressed structured finance products The ratings on Bank of China Ltd. (BOC) reflect the bank's strong franchise in mainland China and Hong Kong, which underpins its strong liquidity profile, and good capitalization. Government support remains an important rating factor. Counterbalancing factors include latent credit risks on the bank's aggressively expanding domestic loan book, against a backdrop of its still-developing credit culture, and its reduced but still sizable exposure to distressed structured finance products. BOC's operations are more diverse than its domestic peers' in terms of business lines and geographic presence because
