Strong capitalization Improved asset quality Future business growth susceptible to competitive pressures from Australia's major banks Weaker capacity than larger peers to source funding in a stressed operating environment The stable outlook reflects S&P Global Ratings' view that the Bank of Queensland Ltd. (BoQ) has a defendable business position in the highly competitive Australian retail banking market. This position is reinforced by BoQ's successful execution of a multi-channel distribution strategy over the past few years, which has reduced its geographic concentration to Queensland. The stable outlook also reflects the bank's strong capitalization, and that the bank has improved its asset quality to a degree that is consistent with that of the Australian banking system as a whole. We are unlikely
