Bulletin: HSBC USA Ratings Still Benefit From U.K. Parent's Strong Support Despite Plans To Exit U.S. Retail Business

NEW YORK (S&P Global Ratings) May 27, 2021--Our ratings and stable outlook on HSBC USA Inc. ('A-/A-2') and its main subsidiary, HSBC Bank USA ('A+/A-1'), are unaffected by the news that the HSBC group plans to exit its U.S. mass market retail business. The company plans to exit 90 of its current 148 branches in the U.S. through sales or wind-downs, and has entered into agreements with Citizens Bank and Cathay Bank to sell certain retail banking assets, including customer relationships with associated deposits and loans. HSBC USA will wind down 35 to 40 branches and retain 20 to 25 locations in existing markets as international wealth centers. We view these transactions as in line with the bank's previously announced

...May 27, 2021 NEW YORK (S&P Global Ratings) May 27, 2021--Our ratings and stable outlook on HSBC USA Inc. ('A-/A-2') and its main subsidiary, HSBC Bank USA ('A+/A-1'), are unaffected by the news that the HSBC group plans to exit its U.S. mass market retail business. The company plans to exit 90 of its current 148 branches in the U.S. through sales or wind-downs, and has entered into agreements with Citizens Bank and Cathay Bank to sell certain retail banking assets, including customer relationships with associated deposits and loans. HSBC USA will wind down 35 to 40 branches and retain 20 to 25 locations in existing markets as international wealth centers. We view these transactions as in line with the bank's previously announced restructuring plan to focus on wealth management while deemphasizing mass retail banking, given the segment's poor profitability. Our ratings on the U.S. subsidiaries - which are equalized with those of the parent - are unchanged because they continue to reflect...

Bulletin