(Repeat for additional subscribers)
March 28 (The following statement was released by the rating agency)
Fitch Ratings says that the implementation of its revised criteria (see 'Covered Bonds Rating Criteria', dated 10 March 2014 on www.fitchratings.com) has no impact on the rating of Chilean mortgage bonds. There is no advanced bank resolution framework in Chile. Therefore, in Fitch's view, in the case of Chile, the National Rating for senior unsecured issuances remains a satisfactory indicator of the likelihood that the recourse against the cover pool would be enforced, and no uplift is applicable.
Fitch's Covered Bonds Rating Criteria was amended to reflect the beneficial position of covered bonds under bank resolution frameworks where resolution tools are in place including the bail-in of certain debt, from which covered bonds are explicitly exempt. The amendment to the criteria is centered on an uplift above the Issuer Default Rating, ranging from zero to three notches, applied prior to the agency's discontinuity risk analysis.
Currently, Fitch rates only one mortgage bond programme in Chile (Banco Santander Chile ), which is rated 'AAA(cl)'/Outlook Stable on the national scale.