DBRS: HSBC unchanged

DBRS said that the ratings of HSBC Holdings plc, including its AA (high) issuer and long-term ratings and its R-1 (high) short-term rating, remain unchanged following the group's announcement that it reached an agreement to sell its U.S. Card and Retail Services Business to Capital One Financial Corp. for $32.7 billion.

DBRS said that the ratings of HSBC USA Inc., including its issuer and senior debt rating of AA, and the ratings of HSBC Finance Corp., including its senior debt rating of A, are unaffected by the announcement.

The trend remains stable.

DBRS said it views the sale positively, despite the modest reduction to the group's earnings generation, as the transaction completes a significant step in HSBC's strategic realignment of its North American operations.

The transaction further de-risks the group's balance sheet, significantly reducing U.S. consumer-related assets at a time of heightened uncertainty regarding the strength of the U.S. economy, the agency said.

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