TEXT-Fitch affirms HSBC Bank (RR) at 'BBB+', outlook is stable

Dec 10 - Fitch Ratings has affirmed Russia's HSBC Bank (RR) LLC's (HSBCR)
Long-term Issuer Default Rating (IDR) at 'BBB+' and Support Rating at '2'. A
full list of ratings actions is at the end of this commentary.

RATING ACTION RATIONALE AND DRIVERS: IDRS, NATIONAL RATING, SUPPORT RATING
The Long-term IDRs continue to reflect the support HSBCR is likely to receive,
if needed, from its ultimate shareholder, HSBC Bank Plc (HSBC).
Following the recent downgrade of HSBC's IDR to 'AA-'/Stable (see "Fitch
Downgrades HSBC to 'AA-', Outlook Stable" dated 7 December 2012 on
www.fitchratings.com), HSBCR's ratings remain four notches below that of its
ultimate parent. The significant notching reflects Russia's transfer and
convertibility risks, which currently cap HSBCR's IDR at 'BBB+'.

RATING SENSITIVITES: IDRS, NATIONAL RATING, SUPPORT RATING
Should Russia's Country Ceiling of 'BBB+' be revised, Fitch would probably
revise HSBCR's ratings. The sale of HSBCR to a lower-rated owner, or a
multi-notch downgrade of HSBC, could each also lead to a downgrade of HSBCR.
However, neither of these is expected at present.

RATING ACTION RATIONALE, DRIVERS AND SENSITIVITES: VIABILITY RATING
Fitch has not assigned HSBCR a Viability Rating (which reflects a bank's
standalone strength) due to its high dependence on the parent. This includes, in
particular, integrated risk management infrastructure, a limited domestic
franchise (with most competences and competitive advantages secured through
integration with the parent), and reliance on parent liquidity and risk-sharing
capabilities.

The ratings actions are as follows:
Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook Stable
Short-term foreign currency IDR: affirmed at 'F2'
Long-term local currency IDR: affirmed at 'BBB+'; Outlook Stable
National Long-term Rating: affirmed at 'AAA(rus)'; Outlook Stable
Support rating: affirmed at '2'

Additional information is available at 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, "Global Financial Institutions Rating Criteria", dated 15
August 2012, 'National Ratings Criteria ', dated 19 January 2011, and "Rating FI
Subsidiaries and Holding Companies", dated 10 August 2012, are available at
www.fitchratings.com.

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Rating FI Subsidiaries and Holding Companies