Moody’s rates Banco Estado notes Aa3

Moody's Investors Service said it assigned an Aa3 long-term foreign currency senior unsecured debt rating to Banco del Estado de Chile's A$110 million 10-year senior unsecured notes maturing on Nov. 10, 2027.

The outlook is stable.

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

The Aa3 debt rating incorporates the very high probability that the bank would receive government support if it faces severe financial stress, the agency said. Although Banco Estado's obligations do not benefit from an explicit guarantee, Moody's said it views the bank as government-backed in line with its 100% ownership by the Republic of Chile, its status as the country's largest deposit-taking institution and mortgage lender, and its significant policy role.

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