HSBC USA Inc.

For these reasons, we rate HSBC USA the same as HSBC's holding company, and we align the ratings on HSBC Bank USA with those on the group's other core operating entities. The U.S. market remains key for the global commercial banking strategies that HSBC executes through HSBC Bank USA, given the U.S. market's large size and importance to the group's customers. We expect that the group would contribute capital to these U.S. subsidiaries, if needed. Moreover, cash and securities represented approximately 50% of total assets at March 31, 2023, with cash representing 30%. The bank also has significant off-balance-sheet borrowing capacity at the Federal Reserve and the Federal Home Loan Bank. Tangible capitalization remains strong, despite high payouts to the

...We expect HSBC USA Inc. and HSBC Bank USA to remain core operating subsidiaries of HSBC Holdings PLC (HSBC). We view the creditworthiness of the U.S. subsidiaries as strongly aligned with their U.K. parent. We base this on their close operational integration with the rest of the group, the strategic importance of HSBC's U.S. operations (as the largest contributor of cross-border revenue to HSBC), and the material size of its capital base relative to the group. For these reasons, we rate HSBC USA the same as HSBC's holding company, and we align the ratings on HSBC Bank USA with those on the group's other core operating entities. Despite the group's exit of its U.S. mass market retail business, we expect HSBC will continue to have sizable U.S. operations in global banking and markets and commercial banking segments These businesses represent the majority of HSBC USA's assets....

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