S&P affirms LQ Inversiones

S&P said it affirmed the A- long-term and A-2 short-term issuer credit ratings on LQ Inversiones Financieras SA.

The outlook is negative.

The agency said the ratings reflect LQ’s status as a non-operating holding company. The long-term rating is one notch below the stand-alone credit profile of its sole operating subsidiary, Banco de Chile, due to the holding company's dependence on the bank's dividend upstream to service debt.

“In addition, we don't expect that potential extraordinary government support, reflected in our ratings on the bank, would be extended to the holding company,” S&P said in a news release.

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