TEXT-S&P rates Corpbanca notes 'BBB+', on watch negative

Thu Jan 3, 2013 2:48pm EST

Jan 3 - Standard & Poor's Ratings Services said today it assigned its 'BBB+'
issue rating to Chile-based bank Corpbanca's (Corpbanca; BBB+/Watch
Neg/A-2) upcoming senior unsecured notes for up to $750 million with a maturity
of five to 10 years. The issue rating is on CreditWatch with negative
implications, as is the bank's long-term issuer credit rating.

The rating on the proposed notes reflects their pari passu ranking with the 
bank's other senior unsecured debt obligations, and as such it is the same as 
the bank's long-term issuer credit rating. The bank will use the proceeds for 
general corporate purposes, mainly to finance its growth strategy in Chile and 
Colombia and to refinance existing debt.

The CreditWatch listing reflects the potential impact on Corpbanca of its 
acquisition of Colombia-based Helm bank, announced in October 2012. We will 
evaluate the impact on Corpbanca's anchor stand-alone credit profile, capital 
charges, and risk-adjusted capital ratios because of increased 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.

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

RELATED CRITERIA AND RESEARCH 
     -- Corpbanca 'BBB+/A-2' Ratings, Inversiones CorpGroup 'BB' Ratings 
Placed On Watch Negative On Agreement To Buy Helm Bank, Oct. 10, 2012
     -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
     -- Banking Industry Country Risk Assessment Methodology and Assumptions, 
Nov. 9, 2011
     -- Bank Hybrid Capital Methodology And Assumptions, Nov. 1, 2011

RATINGS LIST
Corpbanca
 Issuer credit rating           BBB+/Watch Neg/A-2

New Rating
 Senior unsecured notes         BBB+/Watch Neg


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.