Status of HSBC USA Inc. and HSBC Bank USA N.A. as "core" subsidiaries of HSBC Holdings PLC and therefore the likelihood of benefitting from group support if needed Good business diversification Strong risk-adjusted capitalization Profitability, though improving, that has been relatively weak compared with peers' Regulatory risk related to numerous enforcement actions and a deferred prosecution agreement Elevated level of nonperforming assets (NPAs), mainly because of oil and gas and Latin American corporate exposures The rating outlook on HSBC USA Inc. and its bank subsidiary, HSBC Bank USA N.A., is negative, 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 tandem with our
