Moody's downgrades Chilean banks

Moody's Investors Service said it downgraded the senior debt ratings assigned to Banco Santander-Chile, Banco de Chile and Banco del Estado de Chile to A2, from A1. The outlook for these Chilean banks was changed to stable from negative. Moody’s, however, affirmed Banco de Credito e Inversiones’ senior unsecured bond rating at A2 but changed the outlook to stable from positive.

Additionally, the agency raised Banco de Chile’s subordinated medium-term note program ratings to (P) Baa1 from (P) Baa2.

“The downgrade of the deposit and senior debt ratings assigned to Santander, Banco de Chile and Banco Estado was prompted by the downgrade of Chile's sovereign debt rating to A2, from A1, driven by fiscal and economic trends that have gradually but persistently weakened Chile's sovereign credit profile,” Moody’s said in a press release.

The stable outlook for the first three banks reflects the stable outlook for the Chilean government ratings, Moody’s said.

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