Status of HSBC USA Inc. and HSBC Bank USA N.A. as "core" subsidiaries of HSBC Holdings PLC and therefore likely to benefit from group support if needed Good business diversification Profitability, though improving, has been relatively low compared with peers' Reliance on volatile capital-market revenues Regulatory risk remains elevated, stemming from a deferred prosecution agreement Rising level of nonperforming assets (NPAs), mainly because of oil and gas exposure The rating outlook on HSBC USA Inc. and its bank subsidiary, HSBC Bank USA N.A., is stable, reflecting S&P Global Ratings' outlook on their parent, HSBC Holdings PLC (HSBC). We expect our ratings on HSBC USA and HSBC Bank USA to move in line with our ratings on HSBC, given that we
