Low credit-risk exposure Strong absolute and risk-adjusted capital levels Low cost-to-income ratio underpinned by good operational efficiencies High appetite for growth through acquisitions and branches expansion Concentration in Queensland Exposed to Australian banking system's dependence on wholesale funding The issuer credit ratings on Bank of Queensland Ltd. (BoQ; BBB+/Stable/A-2) reflect our view that the bank has low credit-risk exposure, strong capitalization, and a low cost-to-income ratio underpinned by good operational efficiencies. These strengths are moderated by our view that BoQ has a high appetite for growth through acquisitions and expanding its number of branches; is concentrated in Queensland; and is exposed to the Australian banking system's dependence on wholesale funding. Standard&Poor's considers that BoQ's credit losses are likely
