The ratings on The Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific) reflect the bank's standalone profile, which is enhanced by the advantages of its membership in the wider HSBC Holdings Plc group (HSBC group, AA-/Stable/A-1+). HSBC Asia Pacific has a competitive advantage through its leading position within the Hong Kong domestic banking sector, its very strong brand name and franchise, as well as its extensive presence within the Asia-Pacific region. The bank has benefited from a more stable economic operating environment in Hong Kong with low levels of nonperforming assets (NPAs), which has helped profitability despite modest loan growth and strong competition. These favorable factors are counterbalanced by the modest-to-modestly-high industry risk that characterizes the banking sectors in
