MELBOURNE (Standard&Poor's CreditWire) April 6, 2001--Standard&Poor's today affirmed its triple-'B' long-term and 'A-2' short-term counterparty credit ratings on Bank of Queensland Ltd. (BQL). The affirmation follows the announcement that BQL intends to conduct an A$25 million off-market buyback. BQL has the smallest absolute quantum of capital of any of the rated banks within Australia, leaving it more vulnerable to event risk than its peer group. "Strong growth in its core markets and increasing pressure to more efficiently manage its capital base have seen a reduction in core ratios," said Jason Hill, associate director, Financial Services Ratings. "Standard&Poor's tolerance for further capital management initiatives has weakened given the impending reduction in core ratios and the
