The ratings on Bank of Montreal (BMO) reflect its position as one of the five dominant universal banks in Canada, its well-diversified business base, strong risk-adjusted capital ratios, good credit risk management infrastructure, and good toehold into the U.S. market. The weak stature of its market risk management and the ongoing pressure on market share in its retail business in Canada, as well as the difficulties experienced in BMO's U.S. P&C bank, constrain the ratings. We consider enterprise risk management at BMO to be adequate. The bank has a good credit risk management framework in addition to a robust liquidity risk management process. BMO's commodity losses, however, have revealed that while the formal structure of the bank's risk management suggests
