S&P Rates LarrainVial BBB+

S&P has assigned an initial BBB+ (stable) counterparty credit rating to Chilean brokerage LarrainVial. The agency notes LarrainVial’s sound financial profile, good profitability and capitalization, and strong presence in the relatively low-risk Chilean financial system. However, it also notes the broker’s high revenue reliance on Chilean security market transaction volumes, high competitive pressures, and the challenge to strengthen management of market and operational risk. “The stable outlook reflects our expectation that the firm will keep expanding its domestic and international franchise without materially increasing its business risk profile,” says S&P.