The ratings on Bank of China Ltd. (BOC) reflect the bank's strong franchise in mainland China and Hong Kong, which supports its strong liquidity profile and sound profitability. Government support remains an important rating factor. Counterbalancing factors include latent credit risks on its aggressively growing domestic loan book, weakened capitalization, and still evolving credit framework. BOC's operations are more diverse than its domestic peers' in terms of business lines and geographic presence. It has the most extensive overseas operations among Chinese banks, with a particularly strong franchise in Hong Kong, where it is the second-largest lender and general insurer. The bank's entrenched operations in Hong Kong and other overseas markets give it a competitive edge over other major domestic players
