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; and Enhanced competitive position after the merger with BBVA Chile. Challenges resulting from the COVID-19 pandemic; Chile's lower income levels than those of global peers; and Funding profile somewhat concentrated in institutional investors. The negative outlook on Scotiabank Chile for the next 24 months reflects our view of the risk of a prolonged recession, which could heighten economic risks for entities operating in Chile. This could take a toll on the financial institutions' financial profiles, including Scotiabank Chile, particularly in terms of asset quality and capital and earnings. A potential weakening of Scotiabank Chile's intrinsic credit
