[ET Net News Agency, 1 June 2020] Fitch Ratings has upgraded Hang Seng Bank Limited's
(HSB)(00011) Long-Term Issuer Default Rating (IDR) to 'AA-', from 'A+', with a stable
outlook.
The IDR has been removed from Under Criteria Observation, on which it was placed on 4
March 2020 following the publication of Fitch's new Bank Rating Criteria on 28 February
2020.
At the same time, Fitch has affirmed HSB's Short-Term IDR at 'F1+', Viability Rating
(VR) at 'a+' and Support Rating at '1'.
The IDR upgrade is driven by changes introduced in Fitch's revised Bank Rating Criteria.
The credit rating agency now rates HSB's IDR one notch above its VR, which is affirmed,
as Fitch believes its external senior creditors can benefit from resolution funds raised
by the ultimate bank holding company - HSBC Holdings plc (00005)(HSBC, A+/Negative/a+) -
given HSB is a material subsidiary of the group.
The application of a one-notch uplift from its VR is consistent with Fitch's treatment
of other material subsidiaries of HSBC where Fitch holds the same belief regarding
resolution. (KL)