Moody's Investors Service has assigned a Aa3 foreign currency senior unsecured debt rating to Banco de Chile's issuance of JPY 5.8 billion (about US$ 58 million ) in 5-year fixed-rate senior unsecured notes, maturing in March 2019 . The notes were issued under Banco de Chile's US$ 2 billion global medium term notes program, and will be governed by the laws of the State of New York . The outlook on the rating is stable. The following rating has been assigned: Foreign currency senior unsecured debt rating: Aa3, stable outlook. Banco de Chile's Aa3 foreign currency senior debt rating is derived from the bank's Aa3 global local currency deposit rating and is therefore unconstrained by Moody's Aa1 country ceiling for foreign currency bonds and notes. The deposit rating incorporates the bank's a1 standalone baseline credit assessment (BCA) that maps from a B- standalone bank financial strength rating (BFSR) and receives one notch of uplift reflecting Moody's assessment of systemic support because of the bank's large deposit and loan franchise. The bank's a1 standalone BCA reflects Banco de Chile's leading market position as one of Chile's largest banks in loans, deposits, and shareholders' equity, as well as its diversified earnings, customer and product base. Superior financial fundamentals relative to domestic peers, including core profitability, asset quality, efficiency, and tier 1 capitalization, are also incorporated in the relatively high standalone rating. Moody's also said that the principal risk to Banco de Chile's profit performance is the potential for asset quality deterioration as the economy decelerates, particularly in the higher risk consumer and small and midsized business segments which are more exposed to economic volatility. Exposure to these segments is relatively contained so far and delinquencies are manageable, said the agency. High single borrower concentrations, endemic to the large Chilean banks, also present a latent risk that could lead to asset quality and earnings volatility as the pace of economic growth decelerates. The bank has managed these risks very well historically, and has built substantial loan loss reserves and cash capital to protect the balance sheet against potentially higher losses. The last rating action on Banco de Chile was on December 3, 2013 , when Moody's assigned an Aa3 foreign currency senior unsecured debt rating to the issuance of CHF 175 million in fixed-rate senior notes, maturing in December 2019 . Banco de Chile is headquartered in Santiago, Chile , and reported consolidated assets of approximately US$ 50 billion ( CLP 25.3 trillion ) and shareholders' equity of US$ 4.4 billion as of September 30, 2013 .
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