Scotiabank Sudamericano

The ratings on Scotiabank Sudamericano (SSA) consider the increased ownership of Bank of Nova Scotia (Scotiabank; rated A+/Stable/A-1) and its full involvement in the management and operations of this institution. Since December 1999, Scotiabank became the majority shareholder with a 61% stake, and in fiscal 2000 it increased further to 98% through a successful tender offer and through other negotiations with minority shareholders. SSA now benefits from the increased support of its Canadian parent in terms of risk management, credit control, funding, capital, human resources, and technology. Structural changes have already been made to bring the bank in line with Scotiabank's operational standards. In addition, new strategies are being implemented according to well-defined target markets in Chile. Scotiabank has focused

...The ratings on Scotiabank Sudamericano (SSA) consider the increased ownership of Bank of Nova Scotia (Scotiabank; rated A+/Stable/A-1) and its full involvement in the management and operations of this institution. Since December 1999, Scotiabank became the majority shareholder with a 61% stake, and in fiscal 2000 it increased further to 98% through a successful tender offer and through other negotiations with minority shareholders. SSA now benefits from the increased support of its Canadian parent in terms of risk management, credit control, funding, capital, human resources, and technology. Structural changes have already been made to bring the bank in line with Scotiabank's operational standards. In addition, new strategies are being implemented according to well-defined target markets in Chile. Scotiabank has focused on improving the bank's asset quality and efficiency before growing its asset books. These efforts were not successful until Scotiabank took full control of the bank. The...

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