Scotiabank Chile

The stable outlook on Scotiabank Chile reflects our view that it will remain a strategically important subsidiary of BNS. A potential downward revision of Scotiabank Chile's stand-alone credit profile (SACP) wouldn't result in a downgrade, given that we could reflect an additional notch of extraordinary support from its parent. We also expect that the bank will maintain its solid competitive position, credit losses in line with the banking system average, and good capitalization metrics. A downgrade of the bank could occur in the next 24 months if we downgrade Chile. Although unlikely, we could upgrade Scotiabank Chile in the next 24 months if we upgrade BNS and Chile. We use our Banking Industry Country Risk Assessment (BICRA) economic risk and

...The likelihood of extraordinary support from the group is a credit strength for Scotiabank Chile, providing a cushion to the rating. The 'A' rating on the bank incorporates two notches for potential extraordinary group support from BNS. This is because S&P Global Ratings believes Scotiabank Chile is a strategically important subsidiary for the parent, given its integration, ownership, strategy, and long-term commitment. We expect Scotiabank Chile to maintain a satisfactory business position in the Chilean financial system. The bank strengthened its position following mergers and acquisitions, which diversified its operations in terms of lending sectors, segments, and clients, all of which confer revenue stability. These factors temper the competitive pressures in the industry....

Full Report