TEXT-S&P puts Corpbanca, Inversiones CorpGroup on watch negative

Overview
-- On Oct. 9, 2012, Chile-based bank Corpbanca announced the
agreement of its parent company, Inversiones CorpGroup Interhold, to acquire
Colombia-based Helm Bank.
-- We are placing our 'BBB+' ratings on Corpbanca and 'BB' rating on
Inversiones CorpGroup Interhold on CreditWatch with negative implications
reflecting the potential impact of the increased exposure to Colombia.
-- We will evaluate the acquisition's impact on Corpbanca's anchor
stand-alone credit profile, capital charges, risk adjusted capital ratios, and
the resulting capital structure.
-- We intend to resolve the CreditWatch listings after completion of
regulatory approvals in Chile and Colombia.

Rationale
On Oct. 10, 2012, Standard & Poor's Ratings Services placed its 'BBB+' ratings
on Corpbanca and 'BB' rating on Inversiones CorpGroup Interhold S.A. on
CreditWatch with negative implications.

The rating action followed the announcement of the agreement to acquire 100%
of Helm Bank for $1.28 billion. The acquisition would occur through
Corpbanca's subsidiary, Banco CorpBanca Colombia, and will be financed with an
equity issuance of about $1 billion and own resources. Corpbanca will
subscribe about $285 million of this equity issuance, Helm Corp. about $440
million, and other investors the remaining portion. Following the acquisition,
Banco Corpbanca Colombia would become the fifth-largest bank in Colombia with
a market share of about 7% in terms of loans and deposits and an asset base of
$11.8 billion. Corpbanca will own 64% of merged operations in Colombia.

To complete capital infusions at Banco CorpBanca Colombia and to finance its
expansion in the Chilean market, Corpbanca would make an equity issuance for
$600 million and issue subordinated notes. International Finance Corp. will
subscribe part of this equity issuance, as recently announced.

Our ratings on Corpbanca reflect its "adequate" (as our criteria define it)
business position, "moderate" capital and earnings, "adequate" risk position,
"average" funding, and "adequate" liquidity, and our view of a "moderate"
likelihood of government support, given Corpbanca's moderate systemic
importance to the Republic of Chile (foreign currency: A+/Positive/A-1; local
currency: AA/Positive/A-1+) and our assessment of the government as
"supportive" of the country's banking system.

Our ratings on Inversiones CorpGroup Interhold reflect its heavy reliance on
dividends from indirect subsidiary Corpbanca, high debt levels, and aggressive
business expansion. The group's good position in the Chilean banking and
insurance sectors, and Corpbanca's good earnings capacity are partly
mitigating factors.

Inversiones CorpGroup Interhold indirectly owns 45.9% of Corpbanca. A diverse
group of investors, including local stock brokerage firms and local pension
funds, holds the remaining stake in Corpbanca.

CreditWatch
The CreditWatch listings reflect the acquisition's potential impact on both
Corpbanca and Inversiones CorpGroup Interhold. We will evaluate the impact on
Corpbanca's anchor stand-alone credit profile, capital charges, and
risk-adjusted capital ratios due to higher exposure to Colombia (which faces
higher economic risks than Chile) and resulting capital structure after the
acquisition. We intend to resolve the CreditWatch listing after completion of
regulatory approvals in Chile and Colombia.

Related Criteria And Research
-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
-- Use Of CreditWatch And Outlooks, Sept. 14, 2009
-- Analytical Approach To Assessing Nonoperating Holding Companies, March
17, 2009

Ratings List

Ratings On CreditWatch
To From
Corpbanca
Counterparty Credit Rating BBB+/Watch Neg/A-2 BBB+/Stable/A-2
Senior Unsecured BBB+/Watch Neg BBB+

Inversiones CorpGroup Interhold Ltda.
Counterparty Credit Rating BB/Watch Neg/-- BB/Stable/--
Senior Secured BB/Watch Neg BB

Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left
column.