[ET Net News Agency, 21 January 2020] Moody's Investors Service has downgraded The
Hongkong and Shanghai Banking Corporation Limited (HSBC HK), a unit of HSBC Holdings
(00005), and Hang Seng Bank Limited's (00011) long-term foreign currency bank deposit
ratings to Aa3 from Aa2.
At the same time, Moody's has revised outlook on the banks' long-term foreign currency
bank deposit ratings to stable from negative, and the overall outlook on HSBC HK and Hang
Seng Bank to negative(m) from negative.
The downgrade of HSBC HK and Hang Seng Bank's foreign currency deposit ratings to Aa3
from Aa2 is driven by Moody's downgrading of Hong Kong government's long-term issuer
rating and foreign currency deposit ceiling to Aa3 from Aa2.
HSBC HK and Hang Seng Bank's foreign currency deposit ratings are constrained by Hong
Kong's foreign currency deposit ceiling, and following the rating action are at the same
level as the Hong Kong government's long-term issuer rating. (KL)