Coopeuch's funding has become more diversified in recent years, reducing its dependence on institutional deposits and wholesale funding.
The upgrade of Coopeuch's senior debt ratings reflects the upgrade of its long-term, foreign-currency IDR, which is the anchor rating for the debt ratings.
The cooperative's Support Rating of '5' and Support Rating Floor of 'No Floor' reflect the low probability of sovereign support, if needed, given Coopeuch's limited size relative to the Chilean financial system.
The upside potential for Coopeuch's ratings is limited given its niche franchise and small size within the financial system.
Coopeuch's senior debt ratings are sensitive to a change in Coopeuch's IDRs.
Fitch has taken the following rating actions for Coopeuch: