The ratings on HSBC Bank PLC reflect its increasing diversification, solid capitalization, high liquidity, and robust earnings capacity. The bank has made much progress since its acquisition by HSBC Holdings PLC (A+/Stable/A-1) 10 years ago, especially in the areas of asset quality, earnings, and management. The improvements have been based on the financial and business support forthcoming from the parent, as well as on the strength of the U.K. economy and the enhanced position of the banks operating within it. While earnings from retail and commercial banking in the U.K. remain the bank's driving force, dealing profits will continue to contribute significantly to its income. The solid franchise that HSBC Bank has as the principal treasury operation of the HSBC
