Fitch Ratings assigns an expected long-term foreign currency rating of 'A+(exp)' to Banco Santander Chile Senior Zero Coupon Notes Due 2013 of up to a maximum of USD 100 million. The rating is contingent upon the receipt of final documents conforming to information already received. The expected rating assigned to BSC's new debt issuance correspond to the bank's long-term Issuer Default Rating (IDR) and ranks equal to other senior unsecured debt.
BSC's IDRs are driven by its intrinsic credit quality (viability rating), which reflects its strong franchise in Chile, sound asset quality, adequate capitalization and very strong profitability and an ample liquidity that benefits from a large base of retail deposits. In addition, BSC has significantly reduced its refinancing risk building an ample structural liquidity buffer. The Negative Outlook assigned reflects the potential loss of confidence or reputation for the subsidiary, in case the Spain and parent's financial condition continues to deteriorate, though Fitch notes that so far the subsidiary has been perceived by the market --to a large extent-- to be independent from its parent (see 'Fitch Takes Actions on Banco Santander's Latin American Subsidiaries', dated June 13, 2012 at 'www.fitchratings.com'). BSC's IDR of A+ is three notches above its parent's Banco Santander Spain ('BBB+', Negative Outlook), as in Fitch's opinion, BSC is --to a large extent-- ring fenced from its parent Banco Santander.
Fitch currently rates BSC as follows:
--Foreign and local currency long-term IDRs 'A+'; Outlook Negative;
--Foreign and local currency short-term IDRs 'F1';
--Viability rating 'a+';
--Support rating '1';
--Support rating floor 'A-';
--Long-term national rating 'AAA(cl)'; Outlook Negative;
--Short-term national rating 'N1+(cl)';
--Senior unsecured bonds 'A+' and national long-term rating 'AAA(cl)';
--Short-term debt issuance programme 'F1(exp)' ;
--Subordinated bonds national long-term rating 'AA(cl)';
--National equity rating 'Primera Clase nivel 1'.
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 and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);
--'Fitch Takes Actions on Banco Santander's Latin American Subsidiaries' (June 13, 2012);
--'Rating Foreign Banking Subsidiaries Higher than Parent Banks and Parent Bank Holding Companies' (June 12, 2012).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
Rating Foreign Banking Subsidiaries Higher Than Parent Banks or Bank Holding Companies
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681270
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Contacts:
Fitch Ratings
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Santiago Gallo, +54-11-5235-8137
Director
Fitch
Argentina Calificadora de Riesgo S.A.
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C1041AAM
Buenos Aires, Argentina
or
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or
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elizabeth.fogerty@fitchratings.com