Core subsidiary of BOCOM The stable outlook on BOCOMFL reflects our outlook on BOCOM. We expect BOCOMFL to remain a core subsidiary of BOCOM over the next one to two years. We could lower the ratings on BOCOMFL if we downgrade BOCOM. We could also lower the ratings on BOCOMFL if the company's importance to the parent weakens. Such downside pressure could arise if: (1) the parent bank revises its strategy, lowering its support and commitment; (2) BOCOMFL faces execution issues in its business growth initiatives; (3) the company fails to deliver in line with the group's expectations; or (4) the government introduces regulations that are materially adverse for BOCOMFL. We see the possibility of such development as low over
