The ratings on National Bank of Canada (National Bank) reflect the bank's commanding market share in Quebec and its overall performance compared with both Canadian and global peers. The strengths of the institution are rooted in its commercial lending capabilities, which are complemented by good market share in consumer lending and retail products and services. The bank has had moderate success in geographically diversifying its loans and deposits into western Canada. Standard&Poor's views the sale of the bank's U.S. asset-based lending portfolio positively as it will reduce risk. National Bank did not have the critical mass to effectively compete in that market against the larger specialized financial institutions and full service regional banks. Domestic credit quality remains relatively
