Moody’s rates Banco de Chile debt Aa3

Moody's Investors Service said it assigned a long-term foreign currency senior unsecured debt rating of Aa3, on review for downgrade, to Banco de Chile SA's $100 million issuance of five-year floating-rate senior unsecured notes maturing Sept. 9, 2021.

The notes are being issued under Banco de Chile's $3 billion global medium-term note program.

Moody’s said Banco de Chile's Aa3 foreign currency senior debt rating is on review for downgrade to consider the effects that Chile's decelerating economic growth and shifts in the regulatory, market and credit conditions may have on the bank's historically strong asset quality and robust core profitability.

Both asset quality and earnings generation have historically been key strengths of the bank.

The rating nevertheless continues to incorporate the agency’s assessment of a very high probability of support from the Chilean government in case of need, given the bank's large deposit and loan franchise.

The Chilean government's bond rating is Aa3, with a stable outlook.

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