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TEXT-S&P rates Banco Santander-Chile notes 'A'
December 5, 2012 / 7:40 PM / 5 years ago

TEXT-S&P rates Banco Santander-Chile notes 'A'

Dec 5 - Standard & Poor's Ratings Services said today it assigned its 'A'
issue rating to Banco Santander-Chile S.A.'s (BSCh; A/Negative/A-1) Chinese
Renminbi (CNY) 500 million 3.75% senior unsecured fixed notes due Nov. 26, 2014.

"The rating on proposed notes reflect their pari passu ranking to the bank's 
other senior unsecured debt obligations, and as such it is the same as the 
bank's long-term issuer credit rating," said Standard & Poor's credit analyst 
Arturo Sanchez. The bank will use the proceeds for general corporate purposes, 
which include the bank's strategy to continue diversifying its funding 
structure while trying to access cheaper funding sources. The CNY-denominated 
notes don't represent a foreign exchange risk or higher refinancing risk, in 
our view. The latter because the amount issued is around $80 million, which 
represents approximately 0.2% of the BSCh's total funding base.

"Despite our favorable view of a funding strategy targeting lower funding 
costs and a more diversified funding structure, we keep monitoring BSCh's 
funding and liquidity management to assess any aggressiveness that could 
weaken its stand-alone credit profile. This stems from the weakening credit 
quality of its Spain-based parent, Banco Santander S.A., which has suffered 
several downgrades over the past few months," added Mr. Sanchez.

The ratings on BSCh continue to reflect its "strong" business position, 
"adequate" capital and earnings, "adequate" risk position, "average" funding, 
and "adequate liquidity" (as our criteria defines these terms).

For a complete credit rating rationale on BSCh, please see "Banco 
Santander-Chile S.A. 'A/A-1' Ratings Affirmed; Long-Term Rating Outlook 
Revised To Negative," published July 13, 2012.

     -- Banco Santander-Chile S.A. 'A/A-1' Ratings Affirmed; Long-Term Rating 
Outlook Revised To Negative, July 13, 2012
     -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
     -- Banking Industry Country Risk Assessment Methodology and Assumptions, 
Nov. 9, 2011
     -- Group Rating Methodology And Assumptions, Nov. 9, 2011


Banco Santander-Chile S.A. 
  Issuer credit rating                          A/Negative/A-1

Rating Assigned

Banco Santander-Chile S.A. 
 CNY500M 3.75% senior unsecured fixed notes     A

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

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