DBRS: HSBC Finance unchanged

DBRS commented that the ratings of HSBC Finance Corp., including its senior debt rating of A, are unaffected by the company's financial results for the third quarter of 2011.

The trend is stable.

Reversing recent positive momentum, HSBC Finance reported a pre-tax loss from continuing operations, DBRS said.

On an underlying basis, which excludes fair value movements on own debt and related derivatives and the increase in credit provisions owed to an accounting change for trouble debt-restructuring loans, the pre-tax loss increased to $2.1 billion from $1.4 billion in the third quarter, the agency said.

The low interest- rate environment impacted the company's non-qualifying economic hedge portfolio, which resulted in an $885 million charge, which was the key driver in the lower results, DBRS said.

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