DBRS Places HSBC Bank Canada Ratings Under Review with Negative Implications

DBRS Limited (DBRS) has today placed the Long-Term Deposits and Senior Debt as well as the Subordinated Debt ratings of HSBC Bank Canada Under Review with Negative Implications. This change is a direct result of the concurrent rating review of HSBC Holdings plc, the parent entity of HSBC Bank Canada. The ratings of HSBC Holdings plc were placed Under Review with Negative Implications following the anticipated changes in regulation concerning government support. Please refer to the DBRS press release entitled, “DBRS Places 38 European Banking Groups under Review Negative due to Systemic Support,” published earlier today.

DBRS currently assigns HSBC Bank Canada an SA1 support assessment based on DBRS’s view of strong support from its parent entity. As a supported rating, the Under Review with Negative Implications rating of HSBC Holdings plc has a flow-through effect on the ratings of HSBC Bank Canada. Additionally, the Subordinated Debt rating of HSBC Bank Canada is directly notched from its Senior Debt rating, which is why, as a consequence, it too has been placed Under Review with Negative Implications. The Short-Term ratings remain unchanged.

DBRS TELECONFERENCE
DBRS will host a teleconference tomorrow on bank rating actions related to systemic support hosted by Alan Reid, Group Managing Director, Global Financial Institutions and Sovereign Ratings Group. The discussion will include comments from Elisabeth Rudman, John van Boxmeer, William Schwartz and other members of the Global Financial Institutions Group. The discussion will last approximately 30 minutes and will be followed by a question-and-answer session.

TELECONFERENCE DETAILS
Date: Thursday, May 21, 2015
Time: 4 p.m. BST/5 p.m. CET/11 a.m. EDT

Dial-In Details:
North America (Toll-Free): +1 800 379 4140
United Kingdom (Toll-Free): 0800 4960 495
International: +44 20 8196 2881
Reservation Number: 21768960

Notes:
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are DBRS Criteria: Support Assessments for Banks and Banking Organisations (March 2015); Global Methodology for Rating Banks and Banking Organisations (June 2014); and Rating Bank Capital Securities - Subordinated, Hybrid, Preferred & Contingent Capital Securities (February 2015), which can be found on the DBRS website under Methodologies.

These ratings are endorsed by DBRS Ratings Limited for use in the European Union.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.