Standard&Poor's today revised its rating outlook on the 'BBB' long-term rating on Bank of Queensland Ltd. (BoQ) to positive from stable. The 'BBB' and 'A-2' counterparty credit ratings on BoQ are affirmed. The counterparty credit ratings on BoQ reflect its continued sound asset quality, strengthening franchise, increasing efficiency, sound capitalization ratios, and predominately retail-based funding profile. The bank's very sound asset quality position is supported by the low credit risk inherent in BoQ's largely mortgaged-secured loan book. Moderating factors are the bank's current geographic concentration within the Queensland market, weaker than international peers' operational efficiency, and the smaller absolute size of capital. These moderating factors have been partially mitigated by the purchase of UFJ Finance Australia Ltd. in
