MELBOURNE -- Standard&Poor's CreditWire 3/5/98 -- Standard&Poor's today lowered its long-term counterparty credit rating on Bank of Queensland (BQL) to triple-'B' from triple-'BBB'-plus. The bank's 'A-2' short-term counterparty rating was affirmed. The rating outlook remains stable. The lower rating reflects Standard&Poor's view that BQL's profitability has weakened to the extent that it no longer offsets the negative impacts of the bank's small capital base or geographic concentration. The reduction in BQL's capital base has reduced its cushion against event risk, and is also a factor in the decision to downgrade the bank. BQL's rating continues to reflect positively its sound asset quality. Although asset quality has weakened slightly, BQL continues to have a solid
