The outlook on the long-term foreign currency counterparty credit rating on Bank of Communications (BoCom) was revised to positive from stable on Aug. 26, 2004. At the same time, the 'BB' long-term and 'B' short-term foreign currency counterparty credit ratings on the bank were affirmed. The rating actions reflect recent improvements in the bank's capital and asset quality. BoCom's capital has been strengthened by Chinese renminbi (RMB) 18 billion in capital injections from the Chinese Ministry of Finance, its major shareholder, and other government linked agencies, and further augmented by an acquisition of a 19.9% interest in BoCom by Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia-Pacific; foreign currency A+/Stable/A-1, local currency AA-/Stable/A-1+). The transaction makes HSBC Asia-Pacific BoCom's second-largest
