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, and good credit risk management infrastructure. Our view of the poor performance of its U.S. operations, including continued need for parental capital support and ongoing pressure on market share in its retail business in Canada, constrains the ratings. We believe that BMO's still-strong, albeit in parts weakened domestic franchise continues to provide it with a stable core earnings base, mainly fueled by its retail banking activities. Its ability to generate revenues is further supported by its well-diversified sources of income including a full range of banking, investment banking, wealth
