Fitch affirms HSBC at ‘AAA(lka)’; Outlook stable
Fitch Ratings Lanka has affirmed HSBC Sri Lanka Branch’s (HSBCSL)
National Long-Term Rating at ‘AAA (lka)’.The Outlook is Stable. The
rating reflects the financial strength of parent The Hong Kong and
Shanghai Banking Corporation Limited (HKSB; ‘AA-’/Stable), given that
HSBCSL is a branch of HKSB and part of the same legal entity as HKSB.
Thus, Fitch believes that support from HKSB would be forthcoming if
required, subject to any regulatory constraints on remitting money into
HKSB is rated above Sri Lanka’s Issuer Default Rating (IDR) of ‘BB-’
which has a Stable Outlook.
HSBCSL’s National Long-Term Rating is at the highest end of the
National Rating scale. A downgrade of HSBCSL’s rating could result from
HKSB’s rating being downgraded below Sri Lanka’s IDR.
Any changes to Fitch’s expectation of support from HKSB could also be
negative for the rating.
The affirmation of HSBCSL’s rating follows the downgrade of HKSB’s
IDR to ‘AA-/Stable’ from ‘AA/Negative’ on 7 December 2012 (please see
the rating action commentary on www.fitchratings.com).
Established in 1892, HSBCSL is Sri Lanka’s largest foreign bank
HSBC Bank International Limited is the offshore banking arm of the
HSBC Group and is wholly owned by HSBC Bank plc, focusing on providing
offshore solutions and cross border services to expatriates and
It provides a full range of multi-currency personal banking services
to a range of customer segments, including a full internet banking and
telephone banking service.