Sound, although weakening, asset quality, supported by high proportion of low credit-risk residential lending Sound absolute and risk-adjusted capital levels Good market position and brand in its Australian home State of Queensland Greater than peers' appetite for higher return lending segments and small acquisitions Material exposure to wholesale funding The issuer credit ratings on Bank of Queensland (BoQ) reflect our view of the bank's sound asset quality, which, notwithstanding its recent deterioration, remains supported by a high proportion of low-credit-risk residential lending exposures, sound capitalization, and the bank's good market position and brand in its Australian home State of Queensland. These strengths are moderated by our view that BoQ has a greater than peers' appetite for growth through acquisitions, although
