...Parent Support: Scotiabank Peru S.A.A.'s (SBP, or the bank) Issuer Default Ratings (IDR) are based on the expectation of support from its parent entity. Based on the subsidiary's role in the group and its integration with the parent, Fitch Ratings considers SBP a strategically important subsidiary for Bank of Nova Scotia (BNS), which explains why its Local Currency (LC) IDR of `A+' is one notch below that of the parent. The bank's Foreign Currency IDR is capped by Peru's Country Ceiling at `A¡'. Operating Environment High Influence Factor: The operating environment with a Negative Outlook remains a high influence factor for the viability ratings of large banks; as such, any negative rating action on the sovereign or further deterioration of operating conditions will likely lead to a similar adjustment of this factor. Strong Capital Levels: SBP continues to report one of the strongest capitalization metrics among the largest Peruvian banks. Its Fitch Core Capital (FCC)-to-risk-weighted assets...
