The ratings on Bank of Montreal (BMO) reflect our assessment of 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. Our view of the poor performance of its U.S. operations, ongoing pressure on market share in its retail business in Canada, and numerous, identified recommendations for changes and improvement in its enterprise risk management (ERM) framework constrain the ratings. BMO's still-strong, albeit in parts weakened domestic franchise, continues to provide it with a stable core earnings base, mainly driven by its retail banking activities. Competitive pressures within the personal and commercial (P&C) and wholesale bank and wealth
