Fitch Affs Banco Del Estado De Chile Rtgs; New Ratings Assigned.

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 2, 2001

Fitch, the international rating agency, has affirmed Banco del Estado de Chile's (BECH) foreign currency ratings at short-term `F2' and long-term `A-.'

The Rating Watch Evolving on the long-term rating has been removed and a Stable Rating Outlook has been assigned. In addition, individual `B/C,' support `2' as well as short-term `F1' and long-term `A+' local currency ratings have been assigned. BECH's ratings are based on its predominant position within the country's financial system, its significant deposit market share and the potential support it would receive from the government, should it be required. They also take into account its adequate financial profile, considering there are external factors that restrain its profitability, and the heightened competition within the system.

BECH was Chile's third largest commercial bank in terms of total loans (second largest by total assets) with an 11.8% market share at end-2000. Since its establishment, in 1953, following the merger of four state-owned savings and loans institutions dating back to the 19th century, BECH has operated as an autonomous state enterprise. Its main role is the provision of finance and banking services to the lower income segments of the population. However, apart from individuals, it also provides a wide range of banking services to micro, small and medium-sized companies, as well as large corporates. With over 300 branches, a third of which were opened in the past two years, BECH has the largest network in Chile, and although it already has a nationwide presence, it continues to expand in selected locations, planning to open a further 20 branches in 2001. BECH has subsidiaries involved in stockbroking, insurance, debt collection, as well as fund and ATM management although the parent is the group's main component.