October 6, 2017 / 5:50 PM / 9 months ago

Fitch Expects to Rate Banco de Credito e Inversiones' 10-Year USD500MM Sr. Unsecured Bonds 'A-'

(The following statement was released by the rating agency) SANTIAGO/NEW YORK, October 06 (Fitch) Fitch Ratings has assigned an expected Long-Term Foreign Currency rating of 'A-(EXP)' to Banco de Credito e Inversiones's (BCI) 10-year USD500 million senior unsecured fixed-rate bonds due 2027. KEY RATING DRIVERS VIABILITY RATING, ISSUER DEFAULT RATING AND SENIOR DEBT BCI's affirmation considers Fitch's assessment regarding the adequate management of execution risks and impact over the past few months of the acquisition of City National Bank in the U.S. on BCI's overall financial strength. BCI's IDRs are also driven by its strong domestic franchise, sound balance sheet and liquidity management, improved asset quality, ample funding sources, and its relatively high profitability over the past few years, although this last has been pressured recently. The rating assigned to BCI's new debt issuance corresponds to the bank's long-term IDR and ranks equal to its other senior unsecured debt, considering the absence of credit enhancement or subordination feature. For more information on BCP's ratings, refer to "Fitch Affirms Banco de Credito e Inversiones' IDR at 'A-'/Outlook Positive," dated Nov. 8, 2016, available at www.fitchratings.com. RATING SENSITIVITIES IDRs, VR, AND SENIOR DEBT The Outlook for the Long-Term IDRs and National rating is Positive. Resolution of the Positive Outlook sometime in the next six-12 months could be driven by BCI sustaining proven capital metrics amid a tougher operating environment while maintaining solid profitability and asset quality ratios. This would mean an FCC /RWA ratio consistently above 9.5%; sustaining operating profit/RWAs above 1.5%, and NPLs consistently below 2.0%. The rating could also benefit if the bank is able to sustain and continue growing its franchise, along with its ample liquidity and funding position. The Outlook could be revised to Stable if there are significant pressures on BCI's financial performance or if financial metrics described above do not perform as expected. The senior unsecured debt rating would generally move with bank's long-term rating. The rating of BCI's USD500 million senior unsecured fixed-rate bonds due 2027 would move in tandem with the bank's IDRs. Fitch currently rates BCI as follows: --Long-Term Foreign and Local Currency IDRs at 'A-'; Outlook Positive; --Viability rating at 'a-'; --Long-term Foreign Currency senior unsecured at 'A-'; --Long-term National rating at 'AA+(cl)'; Outlook Positive; --Long-term National rating senior unsecured bonds at 'AA+(cl)'; --Long-term National rating subordinated bonds at 'AA-'; --Short-Term Foreign and Local Currency IDRs at 'F1'; --Support Rating at '1'; --Support Rating Floor at 'A-'; --Short-term National rating at 'N1+(cl)'; --National equity rating at 'Primera Clase Nivel 1'. Contact: Primary Analyst Mark Narron Director +1-212-612-7898 Fitch Ratings, Inc. 33 Whitehall St. New York, NY 10004 Secondary Analyst Abraham Martinez Director +562-2499-3317 Committee Chairperson Veronica Chau Senior Director +52 81 8399 9169 Date of Relevant Committee: Nov. 7, 2016 Media Relations: Benjamin Rippey, New York, Tel: +1 646 582 4588, Email: benjamin.rippey@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria - Effective from 15 July 2016 to 25 November 2016 (pub. 15 Jul 2016) here Additional Disclosures Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below