Fitch Ratings on Dec. 11 placed the AAA(cl) long-term national rating of HSBC Bank (Chile) on Rating Watch Negative while affirming the bank's short-term rating at N1+(cl).

The placement reflects the downgrade of parent HSBC Holdings PLC's ratings due to a downward revision in its business model, strategic execution and earnings prospects.

The ratings of HSBC Bank (Chile) reflect the potential support of its parent, which Fitch believes remains high despite its small size within the group and the Chilean banking system. The Chilean unit is also strategically important for the parent due to synergies that support its strategy in the country, Fitch said.