...IDR Driven by Intrinsic Strength: The Issuer Default Ratings (IDRs) of The Hongkong and Shanghai Banking Corporation Limited (HKSB) are based on benefits from its role as HSBC Holdings plc's (HSBC, AA-/Stable/aa-) regional entity for Asia-Pacific (APAC). Fitch Ratings expects HKSB to maintain a strong credit profile due to its leading franchises that generate a stable and strong profit, overall low risk appetite and solid liquidity. Strong Franchise, Business Model: We expect HKSB to maintain its leading market position in Hong Kong ¡ as indicated by a 25% market share of assets at end-1H18 (2009: 28%), which includes 62%-owned Hang Seng Bank (HSB, A+/Stable/a+). Fitch believes HKSB will expand its trade-finance and transaction banking franchises in APAC and continue to enjoy competitive advantages due to its global network. Solid Profitability: We expect risk-adjusted profitability to remain robust amid accelerated loan growth and rising US dollar and Hong Kong dollar interest rates, notwithstanding...
