The Bank of East Asia Ltd.

The stable outlook on BEA reflects our view that the group will likely maintain adequate capital buffers 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 requirements, and a controlled risk appetite in dealing with its risk exposures. The stable outlook also reflects our expectation that the group will retain its moderate systemic importance in Hong Kong and that the Hong Kong government would provide extraordinary support to BEA as needed. We could also lower our ratings on BEA if: (1) the group's loan exposure to mainland China increases materially; and

...BEA should be able to manage credit risks reasonably well for the coming two years despite its property exposure concentration. The group's constrained growth appetite in recent years, adequate underwriting standards, and its effort towards reducing exposure to some of the stressed segments in the mainland China loan book supports credit quality, in our view. BEA to benefit from its established franchise in Hong Kong. BEA is the sixth-largest bank in Hong Kong by total assets as of end-June 2021 and benefits from its strong branch network and a long operating history. It is also designated as one of the six "Domestic Systemically Important Authorized Institutions" by the Hong Kong Monetary Authority (HKMA)....

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