On April 7, 2005, Standard&Poor's Ratings Services raised its long-term counterparty credit ratings on Bank of Queensland Ltd. (BOQ) to 'BBB+' from 'BBB' and, at the same time, affirmed the short-term rating at 'A-2'. The outlook is revised to stable from positive. The rating upgrade reflects Standard&Poor's view that BOQ has transitioned 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 previous 'BBB' 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
