Research Update: Standard Chartered Bank (Hong Kong) Ltd. 'AA-/A-1+' Rating Affirmed; Outlook Stable

We continue to assess that SCBHK has high systemic importance in Hong Kong and that the government is highly supportive of the banking sector. We revised the bank's SACP upward because we assess that the bank's capital and earnings has strengthened after taking into account its capital issuance in 2014 and our assumptions of the bank's slower loan growth and solid profit retention over the next two years. We are affirming our 'AA-' long-term and 'A-1+' short-term issuer credit ratings on SCBHK. We are also affirming our 'cnAAA' long-term and 'cnA-1+' short-term Greater China regional scale ratings on the bank. The stable outlook on SCBHK reflects our view that the bank's SACP will remain within the 'a' category and the

...We continue to assess that SCBHK has high systemic importance in Hong Kong and that the government is highly supportive of the banking sector....

Research Update