Stmt re Banco Santander-Chile

Banco Santander Central Hispano SA
7 August 2002


                    MOODY'S AFFIRMS POSITIVE OUTLOOK
                       FOR BANCO SANTANDER-CHILE

New York, August 05, 2002 - Moody's Investors Service affirmed its positive
outlook for Banco Santiago's (renamed-Banco Santander-Chile) bank financial
strength rating (BFSR) of C+ following the bank's merger with Banco Santander
(Chile) effective on August 1, 2002.

The bank financial strength rating (BFSR) represents Moody's opinion of a bank's
intrinsic safety and soundness and, as such, excludes credit support elements
such as ownership and does not measure the probability of default, both of which
are addressed by the debt and deposit ratings.

The BFSR may also be understood as a measure of the likelihood that a bank will
require assistance from third parties, such as its owners or official
institutions

Banco Santander-Chile's C+ bank financial strength rating, the highest Moody's
gives Latin American banks, is based on its dominant market shares, historically
strong profitability, excellent efficiency, favorable asset quality, and its
conservative management.

At the same time and following the change in name, Moody's withdrew its bank
financial strength and foreign currency deposit ratings for Banco Santander
(Chile) given its absorption by Banco Santiago.

The affirmation of ratings and outlook reflects Moody's view that the new Banco
Santander-Chile will benefit from a larger and more diversified market presence
with approximately 27% market shares in terms of assets, loans, and deposits.
The merger creates the largest banking institution in Chile and represents the
coming together of two important banking brand names. To conform with regulatory
guidelines, management may seek to sell up to 8% of the merged bank's assets
which management expects will increase the value and growth opportunity of the
new bank.

Moody's Baa1 foreign currency deposit rating for the new Banco Santander-Chile
is constrained at the country ceiling for Chile, indicating that on a local
currency basis the ratings would be higher. Santiago's, and now Santander-
Chile's A2 long term foreign currency subordinated debt rating reflects Moody's
view that the ratings for foreign currency bonds of certain issuers may exceed
their country ceilings.

Combined March 2002 assets without adjustments totaled approximately $18
billion. The bank is headquartered in Santiago, Chile.
 
Ratings of Banco Santiago (now-Banco Santander-Chile) affirmed:

                C+ bank financial strength

                P-2 short term foreign currency deposit rating

                Baa1 long term foreign currency deposit rating

                A2 long term foreign currency subordinated debt rating

                Ratings of Banco Santander (Chile) withdrawn;

                C+ bank financial strength rating

                P-2 short term local currency deposit rating

                Baa1 long term foreign currency deposit rating



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