...Negative Outlook Due to Pandemic: The Negative Outlook on The Hongkong and Shanghai Banking Corporation Limited's (HKSB) Long-Term Issuer Default Rating (IDR) mirrors the Outlook on its parent - HSBC Holdings plc (HSBC, A+/Negative/a+) - and reflects the economic disruption caused by the coronavirus pandemic. Fitch Ratings has assigned negative sector outlooks for most Asia-Pacific banking systems and foresees operational challenges, despite HKSB's strong local and regional franchise, as the environment weakens across many of the Asia-Pacific markets in which HKSB operates. Rated Above Operating Environment: HKSB's Viability Rating (VR) is rated above the mid- point of Fitch's operating environment assessment (a/negative). Incorporating the challenges the pandemic has posed for the operating environment, Fitch believes HKSB's VR remains underpinned by its resilient credit profile compared with regional peers, its low risk appetite that we have observed in previous cycles and strong funding...
