...The operating environment for Canadian banks is characterized by a good economic environment and well-developed financial markets and strong regulations. Scotia has been affected by both the growth of consumer lending in Canada, the protracted low interest rate environment in both Canada and the U.S., which has constrained NII, and equity markets which have improved in the past year but remain volatile. Scotia also has significant exposure to international countries, the largest of which is Mexico. Fitch currently rates Mexico's long-term IDR at `BBB+' but in December 2016 revised the Rating Outlook to Negative. This reflected what Fitch believes to be increased downside risks to the country's growth outlook and the challenges this could pose for stabilization of the public debt burden. Fitch notes that growth has been under-performing rating peers and the general government debt burden has been increasing steadily in recent years. Additionally, the victory of Donald Trump in the U.S. presidential...
