KBRA Europe assigns long-term issuer ratings of A (foreign currency) and AA- (domestic currency) to the Republic of Chile. KBRA also assigns short-term ratings of K1 to the sovereign. The Outlook on the long-term ratings is Stable.
This credit rating is an unsolicited credit rating. | |
With Rated Entity or Related Third-Party Participation | Yes |
With Access to Internal Documents | No |
With Access to Management | Yes |
The Stable Outlook reflects Chile's longstanding sound macroeconomic and fiscal performance that is expected to continue, albeit with interruption due to the COVID-19 pandemic. Chile's credit profile is underpinned by strong access to liquidity through its deep capital market and sovereign wealth funds, the latter being rebuilt after drawdowns during the pandemic. Chile's strong institutional profile also underlines its credit ratings and is reflected in its history of sound management of the economy. KBRA acknowledges that the constitutional reform, set to take place through this year, raises uncertainty regarding the Outlook. Chile may serve to benefit from the present commodity price environment. Notably, the Ministry of Finance is pioneering efforts in the ESG bond space and Chile's export products, including copper and lithium, are important inputs in technology that supports a reduction in hydrocarbons.
Click here to view the report. To access ratings and relevant documents, click here.
Ratings are based on KBRA's Sovereigns Rating Methodology, published 20 December 2021 and utilise the ESG Global Rating Methodology, published 16 June 2021.
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Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA's Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.
About KBRA Europe
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
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Contacts:
Analytical
Ken Egan, Director (Lead Analyst)
+353 1 588 1275
ken.egan@kbra.com
Joanna Drobnik, CFA, Senior Director
+353 1 588 1250
asia.drobnik@kbra.com
Joan Feldbaum-Vidra, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2362
joan.feldbaumvidra@kbra.com
Business Development
Mauricio Noé, Co-Head of Europe
+44 208 148 1010
mauricio.noe@kbra.com
