NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed HSBC Bank (Chile)'s long-term foreign and local currency Issuer Default Ratings (IDRs) at 'A' with a Stable Outlook. A full list of the rating actions follows at the end of this release.
KEY RATING DRIVERS - IDRS, SUPPORT AND NATIONAL RATINGS
HSBC Bank (Chile)'s IDRs, support and national ratings reflect the potential support from its parent company, HSBC Holdings Plc. (long-term IDR rated 'AA-'/Stable Outlook by Fitch), even though is considered by Fitch to be of limited importance for its shareholder because of its small size within the group and in its local market. HSBC Bank (Chile)'s long-term IDRs are two notches below the parent's. The bank's National Long-Term ratings of 'AAA(cl)' also reflects the relative position of creditworthiness within the Chilean market.
The bank's '1' Support Rating reflects Fitch's belief that potential support, if needed, remains strong for this subsidiary.
Fitch does not assign a Viability Rating (VR) to HSBC Bank (Chile), as it does not view the company as a standalone entity that can be viewed as independent of its parent.
The Stable outlook for HSBC Bank (Chile)'s IDRs and National ratings mirrors that of its parent's IDRs.
RATING SENSITIVITIES - IDRS AND NATIONAL RATINGS
HSBC Bank (Chile)'s IDRs would move in line with those of its parent. The national scale ratings could be affected by a downgrade of HSBC.
RATING SENSITIVITIES - SUPPORT RATING
HSBC Bank (Chile)'s Support rating could be downgraded if its parent's ability and / or propensity to provide support decreases significantly, which is not considered likely in the medium term.
HSBC Bank (Chile) is small and focused on commercial and global banking and markets business, targeting large Chilean companies, global corporate and financial institutions offering treasury products and investment and corporate banking services, benefiting from the size, diversification and credit quality of its parent.
Fitch has affirmed HSBC Bank (Chile)'s ratings as follows:
--Foreign and local currency long-term IDR at 'A'; Outlook Stable;
--Foreign and local currency short-term IDR at 'F1';
--Support '1';
--National long-term rating at 'AAA (cl)'; Outlook Stable;
--National short-term rating at 'N1+ (cl)'.
Additional information available in 'www.fitchratings.cl' or 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--Global Rating Criteria for Financial Institutions (Jan. 31, 2014);
--Rating of Financial Subsidiaries and Banking Holdings (Aug. 10, 2012);
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397
Rating FI Subsidiaries and Holding Companies
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=843897
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