Standard Chartered Bank (Hong Kong) Ltd.

High likelihood of government support due to high systemic importance in Hong Kong. Status as a core member of the Standard Chartered group. Broad customer deposit base. Strong record of containing credit losses. Strong business stability owing to a long-established franchise. Capitalization is likely to remain moderate. Credit risk exposure to entities from systems with higher economic risk. The stable outlook on Standard Chartered Bank (Hong Kong) Ltd. (SCBHK) reflects our belief that the bank has highly systemic importance in Hong Kong. We also expect SCBHK to maintain its stand-alone credit profile (SACP) at 'a-' over the next one to two years. The potential increase in the bank's credit risk exposure to entities from China or other Asian countries may

...Outlook: Stable The stable outlook on Standard Chartered Bank (Hong Kong) Ltd. (SCBHK) reflects our belief that the bank has highly systemic importance in Hong Kong. We also expect SCBHK to maintain its stand-alone credit profile (SACP) at 'a-' over the next one to two years. The potential increase in the bank's credit risk exposure to entities from China or other Asian countries may weaken our assessment of its 'a-' anchor and SACP. However, SCBHK's risk management capacity to maintain lower credit losses than that of peers facing a similar level of economic risk should mitigate the effects of such exposure. We could upgrade SCBHK if we upgrade the '##-' credit profile of the Standard Chartered group. We could downgrade SCBHK if: (1) We downgrade the credit profile of Standard Chartered group or we no longer consider SCBHK to be a core subsidiary of the group; and (2) we lower the SACP of SCBHK to '###+', downgrade Hong Kong (###/Stable/A-1+; cnAAA/cnA-1+), lower our assessment of the...

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