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HomeBank CapitalHSBC Bank Capital Funding (Sterling 1) LP -- Moody's announces completion of...

HSBC Bank Capital Funding (Sterling 1) LP — Moody’s announces completion of a

Announcement of Periodic Review: Moody’s announces completion of a periodic review of ratings of HSBC Holdings plcGlobal Credit Research – 29 Apr 2021London, 29 April 2021 — Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of HSBC Holdings plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 28 April 2021 in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on for the most updated credit rating action information and rating history.Key rating considerations are summarized below.HSBC Holdings plc’s (HSBC) A2 long-term senior debt ratings reflect the group’s Baseline Credit Assessment (BCA) of a2. Moderate loss-given failure through the application of Moody’s Advanced Loss Given Failure (LGF) analysis and Moody’s expectation of a low probability of support from the Government of the United Kingdom (Aa3) do not provide any uplift.HSBC’s a2 BCA reflects the group’s strong capital and liquidity, and lower reliance on market funding compared with its peers, but also strained profitability.HSBC is geographically diverse, operating across three main business lines, including retail and wealth, commercial and investment banking. Given the size and scale of the business, this heightens operational, governance and succession risks compared with smaller, less complex banks. HSBC maintains a global footprint and concentrated exposure to Asia, which presents unique political risks not present at most banks.The ratings were placed under review for possible downgrade on March 9 2021; for details see Moody’s press release issued on that date.HSBC Bank plc’s (HBEU) A1 long-term deposit and senior debt ratings reflect the bank’s BCA of baa3, Moody’s assessment of a very high probability of affiliate support from is parent HSBC Holdings leading to three notches of uplift, very low loss-given failure leading to two additional notches of uplift through the application of Moody’s Advanced LGF analysis. Moody’s expectation of a moderate probability of support from the Government of the United Kingdom does not provide to any uplift.HBEU’s baa3 BCA reflects the bank’s concentration in capital markets…

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