Moody's rates HSBC securities Baa3 (hyb)

Moody's Investors Service said it assigned a Baa3 (hyb) rating to the proposed high-trigger perpetual non-cumulative additional tier 1 securities to be issued by HSBC Holdings plc (Aa3 senior debt/negative). The outlook on these securities is stable in line with the outlook on HSBC Holdings' unsupported ratings.

The agency said the Baa3 (hyb) rating assigned to the securities is based on its assessment of the likelihood of HSBC Holdings' capital ratio reaching the conversion trigger.

Moody's said it recognizes that the HSBC group has robust capital generation capacity because of its stable and predictable earnings from retail and commercial banking activities and that it has traditionally maintained its capital level well above the U.K. regulatory minimum.

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