S&P: Banco de Chile notes A+

S&P said it assigned an A+ rating to Banco de Chile SA's ¥10 billion senior unsecured notes due 2021 with a fixed rate.

The rating on the notes reflects the pari passu ranking with the bank's other senior unsecured debt obligations, S&P said.

The notes represent only about 0.2% of Banco de Chile's total funding base so this issuance isn’t expected to change the view of the bank's funding profile, the agency said.

Banco de Chile will use the proceeds primarily for general corporate purposes, S&P said.

The ratings reflect the bank’s prominent business position and sound market penetration in the highly competitive Chilean banking system, the agency said.

The bank's asset quality metrics, particularly its credit losses, continue to be stronger than the banking system's average and of other banks that operate in jurisdictions with the same economic risk score, S&P said.

The ratings also consider the bank’s funding structure, which benefits from an ample deposit base with a sound component of retail deposits, the agency said.

The bank’s liquidity position also provides adequate cushion to cope with possible unexpected cash outflows over the next 12 months, S&P added.

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