Ratings On Hong Kong Banks Affirmed Despite Rising Economic Risks

We believe that economic risks facing banks in Hong Kong are increasing because of a significant chance that property prices could continue to rise sharply. However, these banks should continue to benefit from other favorable operating conditions and extraordinary support from the government or parent. We are affirming our ratings with stable outlook on six banks that have a large portion of business in Hong Kong. We expect to lower the SACP of Hang Seng Bank, SCBHK, DBSHK, and FBHK without lowering the issuer credit ratings if property prices rise further, triggering an increase in economic risk in the coming one to two years. HONG KONG (Standard&Poor's) Aug. 31, 2015--Standard&Poor's Ratings Services said today that it

...+ We believe that economic risks facing banks in Hong Kong are increasing because of a significant chance that property prices could continue to rise sharply. + However, these banks should continue to benefit from other favorable operating conditions and extraordinary support from the government or parent. + We are affirming our ratings with stable outlook on six banks that have a large portion of business in Hong Kong. + We expect to lower the SACP of Hang Seng Bank, SCBHK, DBSHK, and FBHK without lowering the issuer credit ratings if property prices rise further, triggering an increase in economic risk in the coming one to two years. HONG KONG (Standard & Poor's) Aug. 31, 2015--Standard & Poor's Ratings Services said today that it had affirmed its ratings on six Hong Kong banks with stable outlooks despite an increase in economic risks that they face. These six banks are: Bank of China (Hong Kong) Ltd. (BOCHK), Hang Seng Bank Limited, Standard Chartered Bank (Hong Kong) Ltd. (SCBHK),...

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