On Aug. 30, 2007, Standard&Poor's Ratings Services affirmed its 'A-' long-term and 'A-2' short-term counterparty credit ratings on The Bank of East Asia, Limited (BEA). The outlook on the long-term rating is stable. At the same time, Standard&Poor's affirmed its 'B' bank fundamental strength rating on the bank. The ratings on BEA reflect the bank's solid domestic franchise in Hong Kong and its rapid but careful expansion in China. They also reflect the bank's improved asset quality, satisfactory liquidity, and sound capitalization. Moderating factors include growing latent credit risks and pressured profitability. BEA has a solid and defendable franchise in Hong Kong, where it is the fifth-largest domestically incorporated bank, but is small relative to the
