Ratings outlook on BOQ Positive

Fitch Ratings said it revised the ratings outlook on Bank of Queensland to positive from stable. Fitch has affirmed BOQ's long-term rating at BBB.
Fitch said the positive outlook reflects BOQ's transformation into a fundamentally stronger institution over the past five years, even as the bank undertakes an ambitious organic growth strategy outside its home state of Queensland. Fitch said that while the signs so far indicate prudent growth, the ultimate success of this strategy was yet to be determined. “If successful, it will provide BOQ with a greater level of geographic diversity, reducing the bank's exposure to localised fluctuations in the Queensland economy.” BOQ's balance sheet has almost tripled in size over the last five years, though not, so far, at the expense of asset quality.