OREANDA-NEWS. Fitch Ratings has affirmed HSBC France's Long-term Issuer Default Rating (IDR) at 'AA-' with a Stable Outlook and its Viability Rating (VR) at 'bbb+'.

HSBC France's IDRs are equalised with those of HSBC Bank plc (AA-/Stable), which is in turn owned by HSBC Holdings plc (HSBC; AA-/Stable), reflecting Fitch's opinion that HSBC France is a core subsidiary of HSBC. Fitch believes that there would be an extremely high probability that HSBC would support HSBC France, through HSBC Bank plc, if required. The Stable Outlook reflects that on HSBC.

Fitch views HSBC France as core to the group's international banking strategy, in light of which default of HSBC France would have significant reputational issues for HSBC. HSBC France is fully owned by HSBC and any sale would be hard to conceive. HSBC France is a strategic European hub for the HSBC group as it is the trading and market-making platform for euro-denominated sovereign bonds and interest rate derivatives. The French bank is also the group's banking platform for large French corporate clients. HSBC France is fully integrated in the group's risk management, strategic direction, business model, funding and liquidity policies.

HSBC France's IDRs would be expected to move in line with those of HSBC. HSBC France's Long-Term IDR could be notched down if Fitch considered that its core importance to the group was likely to diminish, tighter national regulations led to weaker integration or capital and liquidity across the group became less fungible.

HSBC France's VR would benefit from stronger profitability, potentially driven by an improvement in the bank's retail franchise, resulting in a more balanced business profile and lower reliance on potentially volatile capital markets revenues. A marked deterioration in capital ratios or in asset quality would affect the VR.