Fitch Ratings has affirmed Banco Santander Chile's (BSC) Viability Rating (VR) and Long-Term Issuer Default Ratings (IDRs) at 'a-' and 'A-', respectively.

The Rating Outlook for the Long-Term IDRs is Negative. Simultaneously, Fitch has withdrawn all the ratings of BSC. Accordingly, Fitch will no longer provide ratings or analytical coverage for BSC.

Fitch has withdrawn all the ratings of BSC for commercial reasons.

KEY RATING DRIVERS

VR, IDRs AND NATIONAL RATINGS

BSC's IDRs and National long-term rating are driven by its VR of 'a-', and do not factor in any extraordinary support from its parent, Banco Santander; however, BSC remains a strategically important subsidiary.

BSC's ratings are highly influenced by its strong franchise and market-leading position within Chile. At June 30, 2020, BSC was the largest bank in Chile by total loans and deposits, with local market shares of 18.6% and 18.5%, respectively.

The ratings also consider its robust performance through the economic cycles, its healthy asset-quality ratios, diversified funding and capital ratios that are commensurate with its ratings level.

SUPPORT RATING AND SUPPORT RATING FLOOR

BSC is the largest bank in Chile by total loans and deposits. This underpins BSC's Support Rating of '2' and Support Rating Floor of 'BBB+', as, in Fitch's opinion, there is a high probability of state support, should it be needed.

SENIOR UNSECURED, SECURED AND SUBORDINATED DEBT

BSC's senior unsecured bonds are rated at the same level as the bank's Long-Term IDR and National long-term rating, as the likelihood of default of the notes is the same as the one of the bank. Similarly, BSC's CP program is rated at the same level as its Short-Term IDR.

The rating of the 'bonos hipotecarios' (mortgage bonds) are based on BSC's National Rating for senior unsecured issuances of 'AAA(cl)' with a Stable Outlook. The agency views bondholders' recourse to the cover assets as not being strong enough despite their isolation in a special register since their cash flows cannot be directly used to pay bondholders upon a failure of an issuer to do so. The large uncertainty in the effectiveness of asset segregation results in Fitch assigning a Payment Continuity Uplift (PCU) of zero notches and impedes us from assigning any Resolution uplift or recovery uplift. This is in line with Fitch's Covered Bonds Rating Criteria in which we state that where asset segregation is not sufficiently strong, Fitch is unlikely to rate the covered bond above the issuer's senior unsecured debt rating.

Fitch rates BSC's subordinated debt in the National scale two notches below its National long-term issuer rating. The two-notch difference considered the loss severity due to its subordinated nature (after default).

The rating of BSC common shares of 'Primera Clase Nivel 1(cl)' considers the bank's solvency, reflected in the 'AAA(cl)' National rating, and the high liquidity of the shares and market value of the bank.

RATING SENSITIVITIES

Rating Sensitivities do not apply as the ratings have been withdrawn.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579]

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity.

Following the withdrawal of ratings for BSC Fitch will no longer be providing the associated ESG Relevance Scores. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

RATING ACTIONS

ENTITY/DEBT	RATING		PRIOR
Banco Santander Chile	LT IDR	A- 	Affirmed		A-
LT IDR	WD 	Withdrawn		A-
ST IDR	F2 	Affirmed		F2
ST IDR	WD 	Withdrawn		F2
LC LT IDR	A- 	Affirmed		A-
LC LT IDR	WD 	Withdrawn		A-
LC ST IDR	F2 	Affirmed		F2
LC ST IDR	WD 	Withdrawn		F2
Natl LT	AAA(cl) 	Affirmed		AAA(cl)
Natl LT	WD(cl) 	Withdrawn		AAA(cl)
Natl ST	N1+(cl) 	Affirmed		N1+(cl)
Natl ST	WD(cl) 	Withdrawn		N1+(cl)
Viability	a- 	Affirmed		a-
Viability	WD 	Withdrawn		a-
Support	2 	Affirmed		2
Support	WD 	Withdrawn		2
Support Floor	BBB+ 	Affirmed		BBB+
Support Floor	WD 	Withdrawn		BBB+
Nat Equity Rating	Primera Clase Nivel 1(cl) 	Affirmed		Primera Clase Nivel 1(cl)
Nat Equity Rating	WD(cl) 	Withdrawn		Primera Clase Nivel 1(cl)

senior unsecured

LT	A- 	Affirmed		A-

senior unsecured

LT	WD 	Withdrawn		A-

senior unsecured

ST	F2 	Affirmed		F2

senior unsecured

ST	WD 	Withdrawn		F2

senior unsecured

Natl LT	AAA(cl) 	Affirmed		AAA(cl)

senior unsecured

Natl LT	WD(cl) 	Withdrawn		AAA(cl)

subordinated

Natl LT	AA(cl) 	Affirmed		AA(cl)

subordinated

Natl LT	WD(cl) 	Withdrawn		AA(cl)

senior secured

Natl LT	AAA(cl) 	Affirmed		AAA(cl)

senior secured

Natl LT	WD(cl) 	Withdrawn		AAA(cl)

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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