Moody’s: HSBC China, Hang Seng China to stable

Moody's Investors Service said it affirmed the long-term deposit rating of HSBC Bank (China) Co. Ltd. at A1, and that of Hang Seng Bank (China) Ltd. at A2.

At the same time, the agency upgraded HSBC China's baseline credit assessment (BCA) to baa2 from baa3. It also affirmed Hang Seng China's BCA at ba1 and adjusted BCA at a2, and HSBC China's adjusted BCA at a1.

The outlooks were revised to stable from negative.

Moody's said it affirmed the deposit ratings despite the downgrade of the adjusted BCAs of the banks' parents, Hongkong and Shanghai Banking Corp. Ltd (HBAP, Aa3 stable, a1) and Hang Seng Bank Ltd. (HSB, Aa3 stable, a1), to a1 from aa3, which the agency uses as an anchor when assessing affiliate support.

The outlook change follows the change in outlook on HBAP's and HSB's ratings to stable.

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