NEW YORK (Standard&Poor's CreditWire) June 21, 1999—Standard&Poor's today affirmed its ratings on National Bank of Canada (National) following the announcement of its acquisition of First Marathon Securities. The outlook remains negative. The announced acquisition brings further consolidation to the Canadian financial services market as the largest independent Canadian securities company finds a Schedule I bank owner. This transaction will enhance National's position in the investment banking sector through a broader service offering, improved national scope, and better critical mass supporting improved risk management systems. At the same time, the acquisition will increase the relative scale of the more risk-intensive element of National's business mix, while it will also absorb some of National's financial headroom. OUTLOOK: NEGATIVE
