Integral part of a strong global bank Large diverse franchise Weak tangible common equity The ratings on HSBC USA Inc. and on its bank subsidiary, HSBC Bank USA N. A., reflect the implied and demonstrated support of its ultimate parent, HSBC Holdings plc (A+/Stable/A-1). The ratings also factor in HSBC USA's strong franchise in New York State, as well as weak capital measures, adequate earnings, and good asset quality. With loans accounting for only 50% of assets, and 40% of loans being single-family mortgages, credit risk is low for a bank of its size. Earnings are adequate on a risk-adjusted basis and reflect the lower-yielding nature of the asset base complimented with a solid funding profile. The company benefits from
