HSBC Mideast Downgraded

Ratings agency Moody’s Investor Service has downgraded HSBC Middle East’s rating by one notch due to the “weakening capacity” of its parent company HSBC Holdings to provide the bank with support, Reuters reported. HSBC Middle East’s long-term deposit rating was downgraded to A3 from A2. It follows the earlier downgrade of HSBC Holdings’ rating to A2 from A1 on Sept. 27. The parent company’s lower rating reflects the deteriorating operating environments in the bank’s key markets such as the UK and Hong Kong, as well as in other strategic markets such as China, Mexico, Canada and the Middle East, said Moody’s.