Fitch Affirms HSBC's Rating Despite Recent Cuts On Other Banks
13 12월 2011 - 2:14AM
Dow Jones News
Credit rating agency Fitch Ratings on Monday affirmed HSBC
Holdings PLC's (HBC) Double-A credit rating and its stable outlook,
highlighting the bank's resilience despite a recent raft of other
banks being downgraded by ratings agencies.
The affirmations reflect "HSBC's geographically diversified
business model, management's generally low risk appetite,
conservative liquidity and funding positions of the group's local
franchises and its solid capitalization," Fitch said.
"These traits have served HSBC well for many years and provide
the group with a solid base to weather the weaker global economic
outlook and continuing market turbulence."
"In particular, Fitch expects the group to maintain a cautious
approach to its capitalisation and liquidity profile at a time when
earnings are likely to be susceptible to weaker demand and
deteriorating economic trends in several of its major markets," it
said.
Last week, Moody's Corp. cut its ratings on the long-term debt
of three large French banks, citing deteriorating liquidity.
Moody's cut its ratings on the long-term debt of BNP Paribas SA
(BNP.FR) and Credit Agricole SA (ACA.FR) by one notch to Aa3, and
cut Societe Generale SA's (GLE.FR) long-term debt rating by one
notch to A1.
Late last month, Fitch lowered the credit ratings on three
Portuguese banks following an earlier decision to downgrade the
sovereign to below investment grade.
Fitch downgraded Caixa Geral de Depositos, Banco Comercial
Portugues (BCP.LB) and Banco BPI (BPI.LB) by one notch to BB+ from
BBB-, warning that any further cut to the sovereign would trigger
further downgrades to the banks. The rating action on the banks was
a direct consequence of Portugal's sovereign downgrade, Fitch said
then.
Despite the affirmation on HSBC's ratings, Fitch warned that
downside risks could arise should there be higher-than-expected
losses in its U.S.-based HSBC Finance Corp.'s run-off portfolios, a
sharp increase in credit or market risks arising from the euro-zone
crisis or if the Hong Kong subsidiary, Hong Kong and Shanghai
Banking Corp., becomes "more vulnerable to deterioration from
external pressures relative to similarly rated peers."
Early last month, HSBC said bad debts have soared to their
highest quarterly level since 2009 as cash-strapped U.S. homeowners
stopped making mortgage payments. Bad loans were also on the rise
in Hong Kong, Brazil and the Middle East.
The third-quarter's loan impairment charges of $3.89 billion was
up 38% from the second quarter, and 24% from the third quarter of
2010.
HSBC shares closed Monday down 3.2% at 488 pence as most U.K.
financial stocks were sharply lower.
- By Vladimir Guevarra, Dow Jones Newswires. Tel. +44 (0)
2078429486, vladimir.guevarra@dowjones.com