Operations of the Chilean bank Scotiabank Chile benefit from its status as a strategically important subsidiary of The Bank of Nova Scotia (BNS; A+/Stable/A-1). In April 2022, BNS increased its stake in Scotiabank Chile to 99.8% from 83%. This will provide Scotiabank Chile more flexibility in terms of dividends that historically have been 40%-45%. Over the past few years, Scotiabank Chile's capitalization metrics have strengthened, providing enough cushion to maintain its business plan. This stems from improving profitability and capital infusions. We believe that Scotiabank Chile's strategically important subsidiary status, stronger capital base, and greater dividend payout flexibility could offset the potential increase of risk for banks operating in Chile. We're revising our outlook on the bank to stable from
