Sep. 18 at 11:56 PM
Moody’s Ratings affirmed HSBC Holdings’ A3 senior unsecured debt rating on Friday and raised its outlook to positive from stable. It also confirmed ratings for HSBC UK Bank, HSBC Bank and HSBC Continental Europe, raising their outlooks to positive.
Moody’s upgraded the Baseline Credit Assessment of HSBC Bank and HSBC Continental Europe to baa2 from baa3, citing stronger underlying profitability, continued business simplification, and solid capital, funding and liquidity metrics. It expects HSBC Bank to generate about £2 billion in pretax profit in 2026.
The positive outlook on HSBC Holdings reflects a strengthening and more resilient credit profile, supported by sustained earnings, strong execution, reduced downside risks from Hong Kong commercial real estate, and solid liquidity and funding. Moody’s expects problem loans to converge toward about 2% of gross loans.
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