...IDR Based on Viability Rating (VR): Banco Santander Chile's (BSC) issuer default ratings (IDRs) are driven by its intrinsic financial profile (measured by its viability rating [VR] of 'a+'). While the ratings do not reflect any extraordinary support from BSC's parent, BSC remains a strategically important subsidiary for Banco Santander (Santander). Strong Local Franchise: At Aug. 31, 2015, BSC was the largest bank in Chile by total loans and the second largest by deposits, with market shares of 19.5% and 18.0%, respectively. This underpins BSC's support rating and support rating floor, as there is an extremely high probability of state support, should it be needed. Sound Profitability: Historically strong profitability across the cycles is backed by healthy operating revenues and strict cost control. At Aug. 31, 2015, BSC's net income declined by 10.1% YOY due to lower inflation that affected the yield on its inflation-indexed assets (Unidad de Fomento, or CLF), which was partly offset...
