The ratings on Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific) reflect the bank's stand-alone profile, which is enhanced by the advantages of its membership in the wider HSBC Holdings Plc group (HSBC group, A+/Stable/A-1). The foreign currency rating on the bank is constrained by the foreign currency ratings on the Hong Kong Special Administrative Region (Foreign currency: A+/Stable/A-1; Local currency: AA-/Stable/A-1+). HSBC Asia Pacific profits from its leading position within the Hong Kong domestic banking sector and its extensive presence within the Asia-Pacific region. Despite a currently difficult operating environment in Hong Kong, characterized by weak loan demand and price competition, the bank continues to report good profitability, diversified earnings, satisfactory asset quality, a stable funding base, and
