Moody’s changes HSBC to negative

Moody's Investors Service said it affirmed HSBC Holdings plc's A1 long-term senior unsecured debt rating and changed the outlook to negative from stable.

The agency also affirmed the a1 adjusted baseline credit assessment (BCA) and the Aa2 long-term deposit and senior unsecured debt ratings for its main European operating entity, HSBC Bank plc, with a stable outlook.

In addition, Moody's affirmed HSBC France's a2 adjusted BCA, A1 long-term deposit rating and A2 long-term senior unsecured debt rating and changed the outlook to negative from stable.

The Prime-1 short-term ratings for HSBC Holdings, HSBC Bank and HSBC France, as well as their other long-term ratings were affirmed at the current levels.

"Today's rating action reflects Moody's re-assessment of the group's intrinsic financial strength due to deteriorating operating conditions in Hong Kong (Aa1 Negative), one of the group's key markets. This reflects Moody's view that Hong Kong's increasing economic and financial linkages with China (Aa3 negative) give rise to potential spillovers and ultimately weaker economic growth" Moody’s vice president senior credit officer Andrea Usai said in a news release.

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