...Strong Credit Profile: Fitch Ratings expects The Hongkong and Shanghai Banking Corporation Limited (HKSB), a fully owned subsidiary of HSBC Holdings plc (AA-/Stable/aa-), to maintain its strong credit profile despite the weaker Hong Kong operating environment. This is because of its modest risk appetite, regionally diverse operations and integration with HSBC. Support from HSBC provides a floor at the same rating level due to HKSB's core role. Franchise, Business Model: HKSB's competitive advantage stems from its strong franchise in Hong Kong and from being part of HSBC. HKSB is HSBC's regional bank for Asia-Pacific and its strong company profile has a high influence on the ratings. Its parent's network significantly supports HKSB's profit as it generates business referrals from outside Asia, and as Asia-Pacific customers seek services beyond the region. Other benefits from being part of HSBC include management oversight with globally operated business lines and integrated support functions....
