DBRS Changes HSBC Bank Canada Trends to Stable from Negative

DBRS has today changed the trends on all ratings of HSBC Bank Canada to Stable from Negative, following the trend change on the long-term issuer rating of HSBC Holdings plc (the Parent). (Please see the related DBRS press release for HSBC Holdings plc released today.)

DBRS ratings of HSBC Bank Canada are based on the relationship it has with its ultimate parent, HSBC Holdings plc, which is one of the largest global banking groups. DBRS’s long-term issuer rating of HSBC Holdings plc is now AA (high) with a Stable trend.

Under DBRS’s bank rating methodology, DBRS has assigned HSBC Bank Canada a support assessment of SA1, reflecting a strong expectation of timely support from HSBC Holdings plc. The guaranteed debts are rated at the same level as the Parent.

Given the strategic nature of the relationship between HSBC Bank Canada and HSBC Holdings plc but lack of an explicit guarantee, the non-guaranteed long-term deposits and senior debt rating of HSBC Bank Canada has been assigned a rating one notch lower than HSBC Holdings plc.

Note:
The applicable methodologies are the Global Methodology for Rating Banks and Banking Organisations, Rating Bank Preferred Shares and Equivalent Hybrids, Enhanced Methodology for Bank Ratings – Intrinsic and Support Assessments and Guarantees and Other Forms of Explicit Support, which can be found on the DBRS website under Methodologies.