Moody's rates HSBC Bank China A2

Moody's Investors Service said it assigned first-time ratings to HSBC Bank (China) Co. Ltd., including local- and foreign-currency deposit ratings of A2 (long-term) and prime-1(short-term) and a bank financial strength rating of D.

The outlook for the long-term deposit ratings is positive and the bank financial strength rating is stable.

The long-term deposit ratings incorporate Moody's view on the strong implicit support from its parent HSBC HK. However, the ratings are constrained by China's A2 sovereign country ceilings, the agency said.

Its bank financial strength rating reflects the bank's strong intrinsic value as an integrated and strategically crucial part of the HSBC group, its solid brand name in China and its position as the leading franchise among foreign bank subsidiaries in the mainland, Moody's said.

These strengths are offset by HSBC China's small national banking market share as well as the significant challenges HSBC China faces in its ambitious growth strategy, the agency added.

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