Potential extraordinary support provided by its parent The Bank of Nova Scotia (BNS; A+/Stable/A-1) given the strategic importance of Chilean operations for the group. Enhanced competitive position after the acquisition of BBVA Chile. Contraction in economic activity due to the impact of the COVID-19 pandemic. Chile's lower income levels than those of global peers. Funding profile somewhat concentrated in institutional investors. The negative outlook of Scotiabank for the next 24 months reflects our view that the risk of prolonged adverse economic conditions due to COVID-19 and social unrest could translate into consistently heightened economic and credit risks for entities operating in Chile. This could take a toll on the bank's financial profile, particularly in terms of asset quality and capital
