Fitch Rates Banco Estado's JPY Notes Due 2026 'A+'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has assigned a rating of 'A+' to Banco del Estado de Chile's (Banco Estado) JPY15 billion senior unsecured fixed-rate notes. These notes constitute a further issuance of, and will form a single series with, the bank's JPY10 billion fixed-rate notes due June 17, 2026 and issued on June 17, 2016. This issuance is made under the umbrella of the up to USD3 billion Medium-Term Notes Program.

The senior unsecured bonds, denominated in Japanese Yen, will mature on June 17, 2026 and carry fixed annual interest of 0.48%.

KEY RATING DRIVERS

The 'A+' rating assigned to Banco Estado's senior unsecured notes corresponds to the bank's Long-Term Foreign-Currency Issuer Default Rating (IDR) and ranks equal to other senior unsecured debt.

Banco Estado's IDRs and National ratings are driven by the extremely high probability of support from its owner, the State of Chile. Banco Estado represents an important instrument of the Chilean state for developing credit and monetary policies, plays a strategic role for the government, and has systemic importance. Based on these drivers, the bank's IDRs are aligned with Chile's Sovereign Foreign-Currency IDR ('A+'; Outlook Stable) and Local Currency IDR ('AA-'; Outlook Stable).

Banco Estado's Viability Rating fundamentals remain unchanged by this new debt.

RATING SENSITIVITIES

The Rating Outlook for the Long-Term IDRs is Stable, the same as the Outlook for Chile's Sovereign ratings. Changes in the bank's IDRs, support, Support Rating Floor and National ratings are contingent on Sovereign rating actions for Chile.

Fitch currently rates Banco Estado as follows:

--Foreign Currency Long-Term IDR 'A+'; Outlook Stable;

--Local Currency Long-Term IDR 'AA-'; Outlook Stable;

--Foreign and Local Currency short-term IDRs at 'F1+';

--VR 'bbb';

--Support rating '1';

--Support rating floor 'A+';

--Long-Term foreign Currency senior unsecured bonds 'A+';

--Long-Term national rating 'AAA(cl)'; Outlook Stable;

--Short-Term national rating 'N1+(cl)';

--National long-term senior unsecured bonds 'AAA(cl)';

--National long-term subordinated bonds 'AA(cl)'.

Additional information is available at 'www.fitchratings.com'.

Date of Relevant Rating Committee: Nov. 6, 2015

Applicable Criteria and Related Research:

--'Global Bank Rating Criteria' (July 15, 2016).

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160810006179/en/

Fitch Ratings
Primary Analyst
Mark Narron
Director
+1-212-612-7898
Latin America Financial Institutions
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Santiago Gallo
Director
+56-2-499-33-20
or
Committee Chairperson
Rene Medrano
Senior Director
+503 2516-6610
or
Elizabeth Fogerty, New York, +1-212-908-0526
[email protected]

Source: Fitch Ratings

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