...Parental Support Drives Ratings: HSBC Trinkaus & Burkhardt AG's (HSBC Germany) Issuer Default Ratings (IDRs) are equalised w ith those of its ultimate parent HSBC Holdings plc (HSBC) to reflect the extremely high likelihood that support from HSBC w ould be forthcoming, if needed. HSBC Germany provides other HSBC entities w ith access to large and medium-sized German corporate clients, w hich, in our view , has a high strategic value for HSBC. Close Integration: HSBC Germany's integration into HSBC's global netw ork strongly influences its business model, management and strategy. The bank derives a competitive advantage in the fragmented German corporate banking market by offering HSBC's w ide range of financing and advisory products, and access to the group's vast geographical reach. Profitability Broadly Sound: HSBC Germany's profitability has largely exceeded the German banking sector average for many years. Strong competition and market uncertainty eroded its net fee income and its net...
