On July 7, 2008, Standard&Poor's Ratings Services raised its foreign currency long-term counterparty credit rating on Bank of Communications Co. Ltd. (BoCom) to 'BBB+' from 'BBB'. The outlook is stable. At the same time, it affirmed the bank fundamental strength rating of 'C' on the bank. The rating action reflects BoCom's preserved capitalization, stemming from its less aggressive loan growth strategy and enhanced capacity to generate internal capital. It also reflects the bank's ongoing improvements to its risk management, which, along with its commitment to internal reforms, is likely to increase management's awareness of risks associated with rapid loan expansion. BoCom's asset expansion has been less aggressive since the fourth quarter of 2007 than we previously expected. This
