DBRS: HSBC Group on watch

DBRS said it has placed the ratings of HSBC USA Inc. and its banking subsidiary HSBC Bank USA, NA, including the company's issuer & senior debt rating of AA, under review with negative implications.

The agency has also placed the ratings of HSBC Holdings plc, including its AA (high) issuer and long-term debt ratings and its R-1 (high) short-term rating, under review with negative implications.

In addition, DBRS said it has placed the ratings of HSBC Finance Corp., including its senior debt rating of A, under review with negative implications.

The agency noted that these rating actions are driven by the combination of more detailed revelations of HSBC's historic missteps in relation to certain regulatory and legal issues, as well as the changed environment that poses greater challenges to HSBC's franchise and credit fundamentals.

While the missteps are generally in the past, they continue to have consequences for the group and highlight the difficulties of managing large globally active, complex financial institutions in this difficult environment, the agency added.

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