[ET Net News Agency, 10 March 2021] Moody's Investors Service has placed The Hongkong
and Shanghai Banking Corporation Limited's (HSBC HK) and Hang Seng Bank Limited's (Hang
Seng Bank) Aa2 long-term deposit ratings, a1 Baseline Credit Assessment (BCA) and a1
adjusted BCA on review for downgrade.
Moody's has also placed all other long-term ratings and assessments of HSBC HK, The
Hongkong and Shanghai Banking Corporation Limited (New Zealand), The Hongkong and Shanghai
Banking Corporation Limited (Singapore), The Hongkong and Shanghai Banking Corporation
Limited (Sydney), and Hang Seng Bank on review for downgrade. Moody's has affirmed the
banks' short-term ratings and assessments.
The review for downgrade on HSBC HK's a1 BCA takes into account the bank's high
interconnectedness with its parent HSBC Holdings plc's (00005) operations in other parts
of the world.
On 8 March 2021 Moody's placed on review for downgrade the a2 notional BCA of HSBC
Holdings plc.
The review for downgrade on Hang Seng Bank's a1 BCA reflects the bank's close
relationship with its parent HSBC HK and the review for downgrade on the latter's BCA. The
review also takes into account the decline in Hang Seng Bank's profitability in the
aftermath of the coronavirus pandemic. (KL)