Standard Chartered PLC (Holding Co.); Standard Chartered Bank (Lead Bank) Primary Credit Analyst: Fern Wang, CFA, Hong Kong (852) 2533-3536;
[email protected] Secondary Contact: Nigel Greenwood, London (44) 20-7176-1066;
[email protected] Table Of Contents Major Rating Factors Outlook Rationale Group Structure, Rated Subsidiaries Hybrid Issue Ratings Resolution Counterparty Ratings Related Criteria Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 15, 2020 1 Standard Chartered PLC (Holding Co.); Standard Chartered Bank (Lead Bank) Major Rating Factors Issuer Credit Rating BBB+/Stable/A-2 Strengths: Weaknesses: • Strong funding and liquidity profile. • Uncertain operating environment overshadowed by COVID-19, low interest rates, and trade conflicts, • Established franchise in Asia, Africa, and the Middle which pressure credit cost and dampen earnings East, with strong international links. outlook. • Risk-focused culture and streamlining business lines • Presence in emerging markets increases complexity in the past few years could provide some cushion for of operations and can lead to greater volatility in downside risks. earnings. • Political developments among the U.S., China, and Hong Kong could pose uncertainty for its core business markets of Hong Kong and China. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JULY 15, 2020 2 Standard Chartered PLC (Holding Co.); Standard Chartered Bank (Lead Bank) Outlook Standard Chartered PLC The stable outlook of Standard Chartered PLC (SC PLC) reflects our expectation that the effort of the group in cleaning up its balance sheet and strengthening its risk management since 2015 could help the bank to navigate through a difficult market environment overshadowed by COVID-19, low interest rates, and trade conflicts.