Fitch removes HSBC USA from watch

Fitch Ratings said it affirmed and removed from rating watch negative HSBC USA Inc.’s and its subsidiary HSBC Bank USA, NA’s long-term issuer default ratings at A+. The outlook is stable. Other ratings for both entities were unaffected by this rating action.

This action follows Fitch’s removal of the RWN and affirmation of the long-term IDR at A+; stable outlook for the companies’ ultimate parent company, HSBC Holdings plc. The companies were placed on RWN in March, reflecting heightened uncertainty over the outcome of the Brexit process. Specifically, the possibility of a disruptive no-deal Brexit, which would have heightened the probability that Fitch would assign a negative outlook to HSBC’s long-term IDR, which would likely have also impacted the outlook for the two companies’ long-term IDR.

The outcome of the U.K. general election on Dec. 12, means it is highly likely the U.K. will leave the European Union with a withdrawal agreement on Jan. 31. This removes the short-term risk of a disruptive no-deal Brexit, where the U.K. would leave the E.U. without an agreement in place and is reflected in the removal of HSBC’s RWN.

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