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 two years. At the same time, we expect the group to maintain adequate underwriting standards and collateral requirements, and a controlled risk appetite in dealing with its risk exposures. The stable outlook also reflects our assessment 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 lower our ratings if BEA's credit costs rise sharply and loan quality deteriorates more severely than the respective industry averages
