S&P Affirms HSBC Bermuda Ratings
“Standard & Poor’s affirmation of the Bank’s credit rating of AA-/Negative/A-1+ continues to confirm HSBC Bermuda as the highest-rated bank on the Island,” CEO Philip Butterfield said.
In assigning this favourable rating, Standard and Poor’s noted the Bank’s “strong competitive position within the Bermuda banking market, very high capital ratios, good profitability, and a highly conservative liquidity position.”
In terms of outlook, Standard & Poor’s noted “The negative outlook under current bank criteria is based on our expectation that the Bank’s loan performance could weaken further.”
HSBC Bermuda CEO, Philip Butterfield said, “Over the past year we have witnessed a softening in the Bermuda real estate markets with inventory build up. This has been combined with widespread reduction in business activity in the local economy, leading to
loss of income through unemployment or loss of rental income for some customers.”
“We remain committed to working with our customers to create sustainable solutions and would ask that they contact the Bank immediately if changing personal or professional circumstances present future challenges in meeting existing obligations with the Bank. We have found that these early discussions with our customers present the best prospects for success.”
Chief Financial Officer, Michael Schrum, commented that “The Bank is very pleased to maintain a strong rating in the current economic climate. All our businesses continue to generate high quality revenues and I am confident our capital strength will continue to position the Bank as the leading financial services provider in Bermuda.”
