Moody's on April 29 confirmed 's long-termglobal local and foreign currency issuer ratings, as well as its long-termforeign currency debt rating, at B1.
The outlook on all ratings is now stable.
The confirmation was done despite the of the baseline creditassessment of ItaúCorpBanca, as a result of the holding company's loss of controlover its primary source of earnings and a more conservative dividend policy atItaú CorpBanca. The upgrade on Itaú CorpBanca followed the of the merger between CorpBancaand Banco Itaú Chile.
Moody's noted that after the absorption of Banco Itaú Chileinto CorpBanca as part of the merger, Corp Group was left with a 29.05%participation in the surviving entity, down from 43.73% previously.
The ratings also consider Corp Group's high indebtednessrelative to its expected recurring earnings going forward, and its singlefamily ownership and unregulated nature, which could expose it to corporategovernance issues. The company also has relatively weak bond covenants, whichhave limited restrictions on dividends and asset sales.
Moody's also noted that Corp Group has no operations of itsown and services its debt entirely through dividends from Itaú CorpBanca, andto a lesser extent from a 22.03% minority stake in Also,despite the upgrade to Itaú CorpBanca, a conservative new dividend policy thatshould improve the company's relatively low capital levels was implemented,which Moody's expects will restrict its ability to pay dividends to Corp Group.