Moody’s Cuts CorpGroup

Moody’s Cuts CorpGroup

Chile Corporate & Sovereign Strategy

Moody’s has downgraded CorpBanca to Baa3 from Baa2 and parent CorpGroup to Ba1 from Ba3, it says. The agency is concerned that the Chileans’ association with fellow Alvaro Saieh-controlled entity SMU has “hurt the funding flexibility and risk profile of both the bank and its holding.” SMU breached bond covenants earlier this year and needed a capital injection from Saieh, who has recently announced he is considering seeking a merger for CorpBanca. Contagion from SMU has led to higher funding cos

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