Fitch cuts Bank of East Asia view to negative

Fitch Ratings said it revised the outlook on Bank of East Asia's long-term issuer default rating of A- to negative from stable and affirmed its long-term issuer default rating at A- and short-term issuer default rating at F2.

The bank suffered a significant withdrawal of deposits after rumors spread that the bank was in financial difficulties, Fitch said. The withdrawals continued into the next day and then dwindled after the bank and Hong Kong authorities attested to its soundness, the agency said.

But the bank has not disclosed how many deposits were lost, so it is difficult to determine the level of damage incurred by the bank's franchise, Fitch said.

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