Banco Sud Americano's Ratings Affirmed; Outlook Revised to Positive

NEW YORK (Standard&Poor's CreditWire) July 27, 1999--Standard&Poor's today assigned a positive outlook and affirmed its double-'B'-plus long-term counterparty credit and CD ratings on Banco Sud Americano. Standard&Poor's also affirmed its double-'B'-minus rating on the bank's $100 million subordinated notes due 2007. At the same time, Standard and Poor's affirmed its single-'B' short-term counterparty credit and CD ratings on the bank. The outlook was changed in response to the acquisition by Bank of Nova Scotia (rated single-'A'-plus/Stable/A-1) of 32.6% combined shares of the current controlling group, Mr. Jose Borda and Mr. Tomás Garcia, increasing its stake in Banco Sud Americano to 60.6%. The purchase is subject to regulatory approval by authorities in Chile and Canada.

...NEW YORK (Standard & Poor's CreditWire) July 27, 1999--Standard & Poor's today assigned a positive outlook and affirmed its double-'B'-plus long-term counterparty credit and CD ratings on Banco Sud Americano. Standard & Poor's also affirmed its double-'B'-minus rating on the bank's $100 million subordinated notes due 2007. At the same time, Standard and Poor's affirmed its single-'B' short-term counterparty credit and CD ratings on the bank. The outlook was changed in response to the acquisition by Bank of Nova Scotia (rated single-'A'-plus/Stable/A-1) of 32.6% combined shares of the current controlling group, Mr. Jose Borda and Mr. Tomßs Garcia, increasing its stake in Banco Sud Americano to 60.6%. The purchase is subject to regulatory approval by authorities in Chile and Canada. Standard & Poor's believes that over the medium term Nova Scotia will focus on improving Sud Americano's asset quality problems and its less-than-desirable efficiency. Bank of Nova Scotia has been a strategic...

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