NEW YORK & SAN SALVADOR--(BUSINESS WIRE)--Fitch Ratings has placed the following HSBC Bank subsidiaries ratings on Watch Negative:
--Banco HSBC Salvadoreno's Long-term Issuer Default Rating (IDR) and national rating;
--Inversiones Financieras HSBC's National Ratings;
--Banco HSBC (Costa Rica)'s National Ratings.
The ratings were placed on Rating Watch Negative following the announcement of HSBC's agreement to sell these operations to the Colombian Banco Davivienda, S.A. (Davivienda).
Fitch has also affirmed Banco HSBC Salvadoreno's Viability Rating (VR), HSBC Seguros Salvadoreno's National Rating, Banco HSBC Honduras, Seguros HSBC Honduras' National Ratings, HSBC Bank Panama's IDRs and National Ratings, and HSBC Seguros Panama's National Rating. A complete list of rating actions follows at the end of this press release.
A Negative Rating Watch indicates that there is a heightened probability of a potential downgrade once the transaction is completed. The Negative Watch reflects that after the transaction is completed, the sold entities would no longer receive potential support from its current ultimate parent (HSBC Holdings Plc., rated 'AA' with a Stable Outlook by Fitch). The Rating Watch will be resolved once the transaction is completed and Fitch assesses the potential support that Davivienda could provide to its future subsidiaries.
The affirmation of Banco HSBC Honduras' National Ratings considers the potential support it could receive from Davivienda that would allow it to maintain its long-term rating at 'AA+(hnd)'. In turn, HSBC Seguros Salvadoreno and Seguros HSBC Honduras' Long-term National Insurance Financial Strength were affirmed due to the fact that Fitch is confident of the strategic importance that these subsidiaries will represent to Davivienda and to its subsidiary banks in El Salvador and Honduras.
HSBC Bank Panama and HSBC Seguros Panama, remain HSBC Holdings Plc's subsidiaries, and as such, Fitch's opinion on support would be forthcoming, should it be required.
On Jan. 24th, 2012 HSBC agreed to sell its subsidiaries operations in Costa Rica, Honduras, and El Salvador -- all currently owned by HSBC Bank Panama -- to Davivienda for a total consideration of US$801 million. The transaction is subject to regulatory and other approvals and is expected to be completed in the fourth quarter of 2012.
Davivienda, currently rated by Fitch at 'BBB-' with a Stable Outlook, is the third largest bank in Colombia. It is a universal bank operating across all business segments with a particular strength in the consumer business. The bank is controlled by Sociedades Bolivar, which has interests in the construction and insurance industries in Colombia.
Fitch has placed the following ratings on Rating Watch Negative:
Banco HSBC Salvadoreno, S.A.
--Long-term IDR 'BBB-';
--Short-term IDR 'F2';
--Support '2';
--Long-term National Rating 'AAA(slv)';
--Short-term National Rating 'F1+(slv)';
--Senior Unsecured Debt Long-term Rating 'AAA(slv)';
--Senior Secured Debt Long-term Rating 'AAA(slv)';
--Senior Unsecured Debt Short-term Rating 'F1+(slv)';
--Senior Secured Debt Short-term Rating 'F1+(slv)'.
Inversiones Financieras HSBC, S.A.
--Long-term National Rating 'AAA(slv)';
--Short-term National Rating 'F1+(slv)'.
Banco HSBC (Costa Rica), S.A.
--Long-term National Rating 'AAA(cri)';
--Short-term National Rating 'F1+(cri)';
--Senior Unsecured Debt Long-term Rating 'AAA(cri)'.
Fitch affirms the following ratings:
Banco HSBC Salvadoreno, S.A.
--Viability Rating at 'bb'.
HSBC Seguros Salvadoreno, S.A.
--Long-term National Insurance Financial Strength at 'AA+(slv)'; Outlook Stable.
Banco HSBC Honduras, S.A.
--Long-term National Rating 'AA+(hnd)'; Outlook Stable;
--Short-term National Rating 'F1+(hnd)'.
Seguros HSBC Honduras, S.A.
-- Long-term National Insurance Financial Strength 'AA+(hnd)'; Outlook Stable.
HSBC Bank (Panama), S.A.
--Long-term IDR 'A'; Outlook Stable;
--Short-term IDR 'F1';
--Viability Rating 'bbb';
--Support '1';
--Long-term National Rating 'AAA(pan)'; Outlook Stable;
--Short-term National Rating 'F1+(pan)'.
HSBC Seguros (Panama), S.A. y Subsidiarias
--Long-term National Insurance Financial Strength 'AAA(pan)'; Outlook Stable.
Additional information is available on 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011);
--'Insurance Rating Methodology' (Sept. 22, 2011).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
Insurance Rating Methodology
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651018
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