The stable outlook reflects our expectation that The Bank of East Asia Ltd. (BEA) will maintain its financial and business profile for the next 18-24 months. We believe the bank's adequate capitalization and prudent risk management will provide reasonable buffers against potential negative impact on its credit profile resulting from its China strategy. The rating could come under pressure if we believe that support from the Hong Kong government will weaken. Possible scenarios for that to happen include a notable decrease in the bank's deposit market share in Hong Kong. We, however, do not believe such a scenario is likely in the near term. We could lower the ratings if BEA's SACP deteriorates. This could happen if the bank's asset
