The ratings of New York State-based HSBC USA Inc. and its bank subsidiary, HSBC Bank USA reflect the implied and demonstrated support of its ultimate parent, HSBC Holdings PLC (rated 'A+/Stable/A-1'), as well as its good business profile and strong franchise in New York State, and relatively good asset quality. The ratings are also based on adequate risk-adjusted profitability and low tangible capital. The company benefits from strong ties to HSBC Holdings PLC and the strength of the consolidated entity's global franchise, strong capitalization, and earnings capacity. In addition to its history of support for the company, HSBC Holdings PLC's commitment to the latter's expansion strategy in the U.S., as illustrated by the acquisition of Republic Bank of New York
