HSB Preferreds Downgraded to A- by S&P; No Change on Local Scale

Standard and Poor’s has announced:

  • Following a review under Standard & Poor’s revised bank criteria (published on Nov. 9, 2011), we have lowered our long- and short-term ratings on U.K.-based HSBC Holdings PLC (HSBC or “the group”) to ‘A+/A-1’ from ‘AA-/A-1+’ and the long-term ratings on the group’s core operating subsidiaries to ‘AA-‘ from ‘AA’.
  • Other rating actions on debt issues and subsidiaries are listed below.
  • The group’s ‘a+’ stand-alone credit profile reflects our view of its very strong business position, adequate capital and earnings, strong risk position, average funding, and adequate liquidity.
  • The ratings also reflect its high systemic importance in the U.K.
  • The stable outlook on the group reflects our view that the group’s strengths should enable it to withstand any softening in global economic conditions or setbacks in the rundown of its U.S. consumer finance portfolio.

They specifically noted that the P-1(low) rating on the local scale for the preferred stock was affirmed.

HSB has three preferred share issues outstanding: HSB.PR.C and HSB.PR.D (Straight Perpetual) and HSB.PR.E (FixedReset).

One Response to “HSB Preferreds Downgraded to A- by S&P; No Change on Local Scale”

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