Established franchise in Hong Kong. Moderate likelihood of support from the Hong Kong government. Adequate capitalization. Relatively high exposure to China, which has higher economic risk. Economic outlook of major markets dampened by U.S.-China trade conflicts and protests in Hong Kong. Loan concentration in property sectors with significant loan impairment in its commercial real estate (CRE) portfolio in China. 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 next one to two years. At the same time, we expect the group to maintain adequate underwriting standards, stringent collateral
