18 July 2012 7:04am

Bank of Queensland's business profile is drawing mixed reviews from credit ratings agencies.

Moody's Investors Service said yesterday that it had cut the senior unsecured debt rating of BOQ to Baa1 from A3. The subordinated debt of the bank was downgraded to Baa2 from Baa1. Moody's affirmed the short-term rating at Prime-2.

Only a month ago, Standard & Poor's lifted the long-term credit rating on Bank of Queensland to BBB+ from BBB, which means the credit ratings from the two firms now broadly correspond.

Moody's yesterday cited the "structural earnings challenges...