Research Update: HSBC USA Inc. And Subsidiary Ratings Affirmed On Strategy Shift; Outlook Remains Stable

Over the past few years, HSBC USA Inc. (HUSI) has reduced risk and reoriented its business to focus on internationally active private-wealth clients and commercial businesses, thus reinforcing its core strategic importance to its parent company HSBC Holdings PLC (HSBC). Concurrently, HUSI returned capital to its parent beginning in 2019, reflecting balance-sheet risk reduction, including the sale of its mass-market retail operations and its transfer of certain derivatives trading to a U.K.-based affiliate. We affirmed our 'A-/A-2' long- and short-term issuer credit ratings on HSBC USA Inc. and our 'A+/A-1' long- and short-term issuer credit ratings on its main operating subsidiary, HSBC Bank USA N.A. (HBUS). The stable outlook reflects the U.S. bank operations' core status to the parent company,

...- Over the past few years, HSBC USA Inc. (HUSI) has reduced risk and reoriented its business to focus on internationally active private-wealth clients and commercial businesses, thus reinforcing its core strategic importance to its parent company HSBC Holdings PLC (HSBC). - Concurrently, HUSI returned capital to its parent beginning in 2019, reflecting balance-sheet risk reduction, including the sale of its mass-market retail operations and its transfer of certain derivatives trading to a U.K.-based affiliate. - We affirmed our 'A-/A-2' long- and short-term issuer credit ratings on HSBC USA Inc. and our 'A+/A-1' long- and short-term issuer credit ratings on its main operating subsidiary, HSBC Bank USA N.A. (HBUS). - The stable outlook reflects the U.S. bank operations' core status to the parent company, HSBC. We therefore expect our ratings on both to move with our ratings on HSBC....

Research Update