Very good asset quality Strengthening franchise A degree, although lessening, of geographical concentration in Queensland Higher-than-peer exposure to commercial and leasing sectors Susceptibility to slowdown in the housing sector The ratings on Bank of Queensland (BOQ) reflect its transition into a financially stronger institution, with improvements evidenced across its business and financial profile over recent years likely to be sustained over the medium term. Factors constraining the rating have moderated, including the small absolute size of BOQ's capital base by international standards, integration risks associated with the acquisition of UFJ Finance Australia Ltd. (UFJAL) in October 2003, and the geographic concentration of the bank's asset base. Positive supporting factors underpinning the ratings on BOQ include its very sound banking franchise
