The credit ratings agency affirmed its A- long-term issuer credit rating and A-2 short-term issuer credit rating for BOQ, listing the long-term rating as “stable”.
S&P said its ratings reflected the regional bank’s improved business position, strong capitalisation and enhanced asset quality to a level that is consistent with its peers.
“Over the last two years, the bank has delivered sustainable loan growth, both organically and supported in part by its acquisition of BOQ Specialist,” the agency said.
“The business position upgrade is characterised by the bank’s return to system-level loan growth as well as improved deposit growth over the last six months in particular.
“These outcomes are reflective of the continued successful rollout of BOQ’s multi-channel distribution strategy, which has generated business momentum and increased new business volumes per channel, including the expansion of the bank outside of its home state of Queensland.”
S&P said BOQ’s stable outlook also reflected the bank’s restored focus on low-risk residential lending as well as its exit from a number of higher risk commercial banking activities.