Standard Chartered Bank (Hong Kong) Ltd.

Status as a core member of the Standard Chartered group High likelihood of potential government support due to high systemic importance in Hong Kong Rich customer deposit base Strong business stability benefiting from long established franchise Capitalization likely to remain moderate after high dividend payout in 2010 Rapid loan growth in 2010 Standard&Poor's bases its ratings on SCBHK on the bank's "adequate" business position, "moderate" capital and earnings, "adequate" risk position, "above-average" funding, and "strong" liquidity, as defined under our criteria. The stand-alone credit profile (SACP) is 'a-'. The 'a-' SACP draws on our Banking Industry Country Risk Assessment (BICRA) methodology and our view of the economic and industry risks in the countries where SCBHK operates. Our anchor

...Standard & Poor's bases its ratings on SCBHK on the bank's "adequate" business position, "moderate" capital and earnings, "adequate" risk position, "above-average" funding, and "strong" liquidity, as defined under our criteria. The stand-alone credit profile (SACP) is 'a-'. The 'a-' SACP draws on our Banking Industry Country Risk Assessment (BICRA) methodology and our view of the economic and industry risks in the countries where SCBHK operates. Our anchor for SCBHK is 'a-', based on an economic risk score of '3' and an industry risk score of '1'. The economic risk score for SCBHK is based on the weighted average of its private-sector loans to nonbanks in each country in which it lends, including about 90% in Hong Kong. Our economic risk assessment of Hong Kong reflects its wealthy, highly competitive, and resilient economy. Substantial potential imbalances have built up in the economy because of volatile housing prices and rapid credit growth over the past few years. The robust financial...

Full Report