On Sept. 30, 2003, Standard&Poor's Ratings Services revised the outlook on the Bank of Nova Scotia (Scotiabank) and its subsidiaries to positive from stable. At the same time, the ratings outstanding on Scotiabank and its subsidiaries, including the 'A+' long-term counterparty credit ratings, were affirmed. The positive outlook reflects Scotiabank's track record of strong and consistent earnings performance and very strong capital base even when risk adjusted for higher risk activities. These strengths are somewhat offset by the higher risk profile of the bank's corporate lending activities and investments in its international banking subsidiaries. Notwithstanding, even with the significant provisions for loan losses in 2002 and early 2003, the bank was able to earn through the difficult credit
