Fitch Expects to Rate Banco de Credito e Inversiones's 4-Year CHF150MM Sr. Fixed Rate Bonds 'A-'

Fitch Ratings has assigned an expected long-term foreign currency rating of 'A-(exp)' to Banco de Credito e Inversiones's (BCI) four-year CHF150 million senior unsecured fixed rate bonds.

KEY RATING DRIVERS

The rating assigned to BCI's new debt issuance corresponds to the bank's Long-term Issuer Default Rating (IDR) and ranks equal to its other senior unsecured debt.

BCI's VR and IDRs reflect its strong domestic franchise, sound balance sheet and liquidity management, adequate capital base and credit quality, more diversified funding sources, and its stable profitability through the cycle.

For more information on BCI's ratings refer to 'Fitch Affirms Banco de Credito e Inversiones' IDRs at 'A-'', dated Nov. 11, 2014, available at www.fitchratings.com.

RATING SENSITIVITIES

The rating of BCI's CHF150 million senior unsecured fixed rate bonds due 2018 would be downgraded should the bank's IDR be downgraded. The Rating Outlook for the long-term IDRs and national rating is Stable and there are base on BCI's Viability Rating. Downward pressure could result from a deterioration of its capital adequacy ratios, with a Fitch core capital ratio falling and remaining below 8.5%, either from a smaller than planned capital increase or from lower than expected profitability. BCI's VR could also be under pressure if operating return on assets falls and remains below 1.5% in the medium term, or if any unexpected risk related to the acquisition of CNB deteriorates BCI's profitability or capital base.

Upside potential currently appears limited. However, an upgrade could occur if continued growth, coupled with a material improvement of BCI's capital base takes place with greater levels of core capital, while maintaining sound overall performance, low risk profile and ample liquidity.

Fitch currently rates BCI as follows:

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

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

--VR 'a-';

--Support rating '1';

--Support rating floor 'A-';

--Long-term foreign currency senior unsecured bonds 'A-';

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

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

--National long-term rating senior unsecured bonds 'AA+(cl)';

--National long-term rating on its subordinated bonds 'AA-(cl)';

--National equity rating 'Primera Clase nivel 1'.

Additional information is available 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=934736

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