The ratings on Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia-Pacific) reflect the bank's status as a core entity of the HSBC group, led by HSBC Holdings PLC (AA-/Stable/A-1+). We rate the core operating entities of the HSBC group at 'AA/A-1+' with stable outlooks. The ratings on HSBC Asia-Pacific also reflect the bank's leading position in terms of assets and branch network in the domestic banking sector in Hong Kong, its extensive presence in the Asia-Pacific region, and its very strong brand name and franchise. These are important factors behind the bank's superior customer deposit base, and support its very strong financial profile. HSBC Asia-Pacific's stand-alone credit profile is constrained by the modestly high industry risk in the banking sectors
