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Moody's affirms Bci on commitment to raise capital for TotalBank deal

Moody's on Dec. 7 affirmed all of its ratings on Banco de Credito e Inversiones SA, or Bci, after the Chilean bank signed an agreement to acquire Florida-based TotalBank from Banco Santander SA for about $528 million.

The affirmed ratings include the bank's long-term global local and foreign currency deposit ratings of A1, with a negative outlook, as well as its short-term global local and foreign currency deposit ratings of Prime-1.

The company's baseline credit assessment and adjusted baseline credit assessment were affirmed at "baa1," while its long- and short-term counterparty risk assessments were affirmed at A1(cr) and Prime-1(cr), respectively.

The affirmation takes into account Bci's commitment to raising additional capital to ensure that the acquisition does not negatively impact the bank's consolidated capital ratio, Moody's said. The company's plan to raise between $300 million and $400 million will help it maintain tangible common equity at roughly 10% of adjusted risk-weighted assets.

"While asset risk may be rising, Bci's ratings benefit from sound financial fundamentals, including good historical asset quality in its home market, ample profitability, and strong funding and liquidity," the rating agency noted.

Fitch Ratings and S&P Global Ratings also affirmed their ratings on Bci following the deal announcement.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.