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
Issuer credit rating BBB+/Watch Neg/A-2
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