...Parent Support: Scotiabank Peru S.A.A. (SBP) is considered a strategic subsidiary of the Bank of Nova Scotia (BNS [AA¡/Stable]). Hence, in Fitch Ratings' opinion, there is a high probability that SBP would receive support from its parent, if required. BNS's potential support underpins SBP's Issuer Default Rating (IDR) and Support Rating. Strong Capitalization: SBP's capital adequacy metrics are among the strongest of the Latin American banks rated by Fitch in the `bbb' category, and higher than those reported by its closest Peruvian peers. Bolstered by moderate growth, sustainable profitability, stable asset quality and sound earnings retention, SBP's Fitch Core Capital (FCC) to risk weighted assets (RWA) ratio improved to 15.7% at YE17 from 14.1% at YE16. Given SBP's sound internal capital generation, Fitch expects the bank's capitalization will remain above the average of peers and its own conservative internal limits. Slight Asset Quality Deterioration: SBP's consolidated asset quality...
