S&P upgrades BBVA Chile

S&P said it raised its long-term issuer credit rating on Banco Bilbao Vizcaya Argentaria Chile y Filiales (BBVA Chile) to A from BBB+ and its short-term rating to A-1 from A-2.

At the same time, the agency removed the ratings from CreditWatch developing, where they were placed on Nov. 30.

The outlook is negative.

S&P said the action follows the announcement that Bank of Nova Scotia completed the acquisition of BBVA Chile to Banco Bilbao Vizcaya Argentaria SA.

“The ratings reflect BBVA Chile's strategically important subsidiary status to BNS because we believe that the former is unlikely to be sold and that it's important to the group's long-term strategy because the subsidiary is located in a strategic market for BNS,” the agency said in a news release.

“Therefore, the bank's rating could receive up to three notches of support above its stand-alone credit profile (SACP) of bbb but limited to one notch below the group credit profile. As a result, the rating receives three notches of group support.”

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