Fitch rates HSBC UK Bank AA-

Fitch Ratings said it affirmed the ratings of HSBC Holdings plc's subsidiaries HSBC Bank plc (AA-/stable, a+) and HSBC Latin America Holdings (UK) Ltd. (AA-/stable).

At the same time, the agency assigned expected ratings to HSBC UK Bank plc, the new U.K.-based ring-fenced bank, of AA-(EXP).

“The expected ratings assigned to HSBC UK reflect the planned ring-fencing restructuring for HSBC Bank,” Fitch said in a news release.

“As part of the restructuring UK retail banking & wealth management (RBWM) and commercial banking (CMB) businesses will be transferred to the new bank HSBC UK. HSBC Bank will focus on global banking & markets (GB&M) – reflecting its role as a European service centre for international HSBC clients – as well as banking activities in France and other European countries.”

The agency said it expects that HSBC UK and HSBC Bank will be sister companies, to be held by a U.K.-based intermediate holding company.

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