The ratings on Standard Chartered Bank (Hong Kong) Ltd. (SCBHK) reflect the bank's status as a core entity within the Standard Chartered group, which is led by Standard Chartered PLC (A/Stable/A-1). The ratings on the bank are equalized with the ratings on its immediate parent, Standard Chartered Bank (SCB; A+/Stable/A-1). On a standalone basis, the ratings on SCBHK reflect the bank's solid franchise in Hong Kong and its good financial profile, but are constrained by its relatively high operating costs and strong competitive pressures in its home market, Hong Kong. While its sizable and growing indirect exposure to emerging markets, channeled by the parent group's global network, is a sensible deployment of its surplus funds, the relatively higher risk consequently
