HSBC USA Inc. and HSBC Bank N.A. are core operating subsidiaries of HSBC Holdings PLC and benefit from group support. HSBC Bank USA N.A. is one of the largest banks in the U.S. with a diversified set of businesses. Improving asset quality performance driven by shedding of noncore assets. Profitability has been relatively low compared with peers'. Mediocre earnings power with a higher reliance on volatile capital-market revenues. High regulatory risk stemming from deferred prosecution agreement. The rating outlook on HSBC USA Inc. and its bank subsidiary, HSBC Bank USA N.A., is negative, reflecting Standard&Poor's Ratings Services' rating outlook on their parent, HSBC Holdings PLC (HSBC). We expect our ratings on HSBC USA and HSBC Bank USA to
