Moody's downgrades HSBC USA

Moody's Investors Service said it downgraded the standalone bank financial strength rating/baseline credit assessment of HSBC Bank USA, NA to C-/Baa1 from C/A3.

The outlook is negative.

Moody's affirmed the A2 long- and short-term supported debt ratings of HSBC USA Inc. and its subsidiaries, including the A1 deposit ratings of HSBC Bank USA, with stable outlooks.

Moody's said the downgrade of HSBC's standalone rating reflects the company's weak profitability, which continues to be adversely affected by elevated costs to resolve regulatory issues and low interest rates, which are depressing its net interest margin and other profitability metrics.

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