Fitch puts HSBC Canada on watch

Fitch Ratings said it placed HSBC Bank Canada's long-term issuer default ratings of AA- on Rating Watch negative.

This action does not affect any debt ratings.

This action follows placement of parent, HSBC Holdings plc, on Rating Watch negative, reflecting heightened uncertainty over the ultimate outcome of the Brexit process, Fitch said.

In the event of a no-deal Brexit where the United Kingdom leaves the European Union at the end of March or after a short extension, Fitch said it sees heightened probability that it would revise the outlook on HSBC's long-term issuer default ratings to negative, which also would likely affect HSBC Canada's outlook.

HSBC Bank Canada's issuer default rating is equalized with HSBC at AA-, reflecting the strong view of institutional support, both in terms of propensity and ability should the need arise, the agency said.

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