We expect BEA to maintain its business position and adequate capitalization over the next 12-24 months. That said, the bank's loan quality will likely remain under pressure. We are affirming our 'A' long-term and 'A-1' short-term issuer credit ratings on BEA and its core subsidiary BEA China. We are also affirming our 'cnAA+' long-term and 'cnA-1' short-term Greater China regional scale ratings on the banks. The negative outlook reflects the prospect of a downgrade if the likelihood of Hong Kong government support reduces upon implementation of the new resolution regime, or if BEA's loan quality deteriorates severely. On Sept. 22, 2016, S&P Global Ratings affirmed its 'A' long-term and 'A-1' short-term issuer credit ratings on The Bank of East Asia
