Moody’s cuts Hongkong and Shanghai Banking

Moody's Investors Service said it downgraded Hongkong and Shanghai Banking Corp. Ltd.'s long-term deposit, senior unsecured and issuer ratings to Aa3 from Aa2, long-term CD and senior unsecured medium-term note program ratings to provisional Aa3 from provisional Aa2, long-term counterparty risk assessment to Aa2(cr) from Aa1(cr) and junior subordinated notes rating to A2(hyb) from A1(hyb).

At the same time, the agency downgraded the bank's baseline credit assessment (BCA) and adjusted BCA to a1 from aa3.

The short-term bank deposit and commercial paper ratings were affirmed at P-1, short-term counterparty risk assessment at P-1(cr), and other short term rating affirmed at provisional P-1.

The outlook on the bank's long-term deposit, senior unsecured and issuer ratings has been revised to stable from negative.

Moody's said the downgrade of the BCA and adjusted BCA takes into account increased macro risks in several of the countries the bank operates across the region. Specifically, rises in corporate and/or household leverage in recent years in major markets for the bank increase these economies' and borrowers' sensitivity to negative shocks, which pose risks for the bank's asset quality, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.