(The following statement was released by the rating agency)
Nov 21 - Fitch Ratings assigns a long-term foreign currency rating of 'A+'
to Banco Santander Chile's (BSC) CNY500 million senior fixed rate notes due
2014. The 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
The notes will mature on Nov. 26, 2014 and carry a 3.75% fixed interest rate;
interests will be payable semi-annually.
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
The Negative Outlook reflects the potential loss of confidence or reputation for
the subsidiary financial conditions for Spain or BSC's parent company continue
to deteriorate. However, the subsidiary has thus far been largely perceived by
the market as 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 that of its
parent, Banco Santander Spain ('BBB+', Negative Outlook). Fitch believes that to
a large extent BSC is 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)';
--Subordinated bonds national long-term rating 'AA(cl)';
--National equity rating 'Primera Clase nivel 1'.
(Caryn Trokie, New York Ratings Unit)