Integral part of a strong global bank Large and diverse business franchise High loan leverage Low earnings 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+/Positive/A-1). The ratings also factor in HSBC USA's strong franchise in New York State, as well as adequate capital and earnings measures and good asset quality. With loans accounting for 60% of assets, and 53% 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. As loans have grown, the deposit base has not
