Fitch Rates Banco Santander Chile's Short-Term Notes 'F1(exp)'

Fitch Ratings assigns an expected short-term foreign currency rating of 'F1(exp)' to Banco Santander Chile's (BSC) upcoming USD100 million-USD150 million six months floating rate notes due May 2012. The rating is contingent upon the receipt of final documents conforming to information already received. The expected rating assigned to BSC's new issuance correspond to the bank's short-term Issuer Default Rating (IDR) and ranks equal to other senior unsecured debt.

At their current levels BSC's IDRs are derived from the support of its parent. BSC's viability rating, as well as its individual rating, is supported by its leading market share in Chile and its track record of strong and consistent profitability, healthy asset quality and good capital adequacy. On Oct. 13, Fitch revised BSC's Outlook on its long-term IDR to Negative from Stable, reflecting the linkage of BSC's viability rating and IDR with those of its parent, which was downgraded following the same action on Spain's sovereign ratings, and the fact that further rating actions on the latter or on Santander's ratings could affect BSC's ratings.

Fitch currently rates BSC as follows:

--Foreign and local currency long-term IDRs 'A+'; Outlook Negative;

--Foreign and local currency short-term IDRs 'F1';

--Viability rating 'a+';

--Individual rating 'B';

--Support rating '1';

--Long-term national rating 'AAA(cl)'; Stable Outlook

--Short-term national rating 'N1+(cl)';

--Senior unsecured bonds 'A+'and national long-term rating 'AAA(cl)';

--Subordinated bonds national long-term rating 'AA(cl)';

--National equity rating 'Primera Clase nivel 2'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171

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