Established franchise in Hong Kong. Moderate likelihood of support from the Hong Kong government. Adequate capitalization. Exposure to higher economic risk in China. Loan concentration to the property sector. The stable outlook on The Bank of East Asia Limited (BEA) reflects our view that the group will likely maintain adequate capital buffer to withstand credit risks in the markets where it operates, mainly Hong Kong and mainland China, for the coming one to two years. At the same time, we expect the group to maintain prudent underwriting standards, stringent collateral requirements, and a controlled risk appetite in dealing with its risky exposures. The stable outlook also reflects our expectation that the group will retain its moderate systemic importance in Hong
