Research Update: Scotiabank Chile Assigned 'A' Issuer Credit Rating; Outlook Stable

In our view, Chilean bank Scotiabank Chile's operations benefit from its status as a strategically important subsidiary to its parent, The Bank of Nova Scotia (BNS; A+/Stable/A-1). We consider that the bank has a good competitive position, an adequate forecasted risk-adjusted capital (RAC; according to our methodology) ratio, and healthy asset quality metrics despite its consumer segment focus. We also believe the bank's funding and liquidity benefits from ongoing support from its parent. We're assigning our 'A' global scale issuer credit rating to Scotiabank Chile. The stable outlook on Scotiabank Chile for next 24 months reflects our view that the bank will maintain its good competitive position, a RAC ratio at adequate levels over the next two years, healthy asset

...+ In our view, Chilean bank Scotiabank Chile's operations benefit from its status as a strategically important subsidiary to its parent, The Bank of Nova Scotia (BNS; A+/Stable/A-1). We consider that the bank has a good competitive position, an adequate forecasted risk-adjusted capital (RAC; according to our methodology) ratio, and healthy asset quality metrics despite its consumer segment focus. We also believe the bank's funding and liquidity benefits from ongoing support from its parent. + We're assigning our 'A' global scale issuer credit rating to Scotiabank Chile. + The stable outlook on Scotiabank Chile for next 24 months reflects our view that the bank will maintain its good competitive position, a RAC ratio at adequate levels over the next two years, healthy asset quality metrics, and its group status as a strategically important subsidiary to BNS....

Research Update