Fitch might cut HSBC France, HSBC Germany

Fitch Ratings said it placed the AA- long-term issuer default ratings of HSBC France and HSBC Trinkaus & Burkhardt AG's (HSBC Germany) on rating watch negative.

The agency said the ratings are driven by institutional support from their ultimate parent, HSBC Holdings plc (AA-/RWN/F1+).

Fitch said the actions follow a recent similar rating action on HSBC's long-term issuer default rating.

HSBC France's and HSBC Germany's other ratings are not affected by the action.

“The RWN on HSBC's long-term issuer default rating reflects the heightened uncertainty over the ultimate outcome of the Brexit process and the increased risk that a disruptive 'no-deal' Brexit, where the U.K. leaves the E.U. without a withdrawal agreement in place, either in March or at the end of a short extension, could result in a negative rating action on HSBC, most likely with a negative outlook being assigned to its AA- long-term issuer default rating,” the agency said in a news release.

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