Fitch to rate Coopeuch note program BBB

Fitch Ratings said it expects to assign a rating of BBB(EXP) to Cooperativa del Personal de la Universidad de Chile Ltda.'s (Coopeuch) upcoming senior unsecured global medium-term note program for an amount of up to the equivalent of $1 billion, in line with the issuer's long-term issuer default rating.

There is no assurance that notes issued under the program will be assigned a rating, or that the rating assigned to a specific issue under the program will have the same rating as the program, as it will depend on the specific characteristics of each issuance.

The global medium-term note offering will be pari pasu with all other senior debt issued by the company and its risks – therefore, its expected rating may mirror Coopeuch's issuer default rating. The agency affirmed the issuer default rating on June 29 with a positive outlook as part of its periodic review.

Fitch said Coopeuch's ratings are underpinned by a long track record of operating profitability in excess of 5% of risk weighted assets; ample capitalization benefitting from cooperative members' consistent acquisition of additional shares; stable asset quality favored by a concentration in payroll loans to public sector employees with automatic deduction features; and steadily diversifying funding including a stable retail deposit base.

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