Moody's rates Kreditprombank note B2

Moody's Investors Service said it assigned a B2 long-term foreign-currency debt rating to the upcoming issue of loan participation notes to be issued by HSBC Bank plc on a limited recourse basis for the sole purpose of funding a senior unsecured loan to Kreditprombank.

The outlook is stable.

The agency said the rating is based primarily on the credit quality of Kreditprombank as an underlying borrower. In the event of default, the noteholders must rely not only on the credit quality of Kreditprombank, but also on the financial standing of HSBC Bank, as they will have no recourse to any of the issuer's assets in relation to the notes and are unsecured creditors.

But, given the current credit strength of HSBC Bank (reflected in its Aa2/prime-1 ratings with a positive outlook) the probability of such an event occurring is low, according to Moody's.

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