Skip to main content
Advertising

Originally published Friday, December 7, 2012 at 10:00 AM

  • Share:
           
  • Comments (0)
  • Print

Fitch downgrades HSBC

Fitch Ratings has cut its debt rating on HSBC Holdings PLC, saying the risks attached to its expansion into higher-risk markets such as China is no longer sufficiently mitigated.

The Associated Press

Most Popular Comments
Hide / Show comments
No comments have been posted to this article.
Start the conversation >

advertising

LONDON —

Fitch Ratings has cut its debt rating on HSBC Holdings PLC, saying the risks attached to its expansion into higher-risk markets such as China is no longer sufficiently mitigated.

The credit ratings agency lowered HSBC's long-term issuer default rating to AA- from AA, but revised up its outlook on Europe's biggest bank from negative to stable.

Fitch added that HSBC's increasing costs of managing its diverse operations - from legal fees to compliance and governance expenses - will outweigh any previous benefits from the group's business and geographic diversification.

Last month, HSBC said it has set aside a further $1.15 billion to cover potential U.S. fines for failing to stop money-laundering in its Mexican unit and to compensate U.K. customers for mis-selling payment protection insurance.

News where, when and how you want it

Email Icon

The Seattle Times photographs

Seattle space needle and mountains

Purchase The Seattle Times images


Advertising