...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 Company Profile: At June 30, 2016, BSC was the largest bank in Chile by total loans and deposits, with market shares of 19.5% and 19.0%, respectively. This also underpins BSC's support rating and support rating floor, as there is an extremely high probability of state support, should it be needed. Favorable Operating Environment: The ratings also reflect the favorable operating environment in Chile compared to its regional peers, which has supported its healthy asset- quality ratios, sound core profitability, diversified funding, and adequate capital position. Sound and Stable Profitability: Historically strong profitability across the...
